How would you feel if you lost your home to foreclosure only to find out that someone working at the bank used it to entertain friends? Wells Fargo Forecloses on $12 million mansion, executive uses home to party.
Newsstands have been buzzing about the recent scandal at Wells Fargo when a high-ranking executive was reportedly seen making herself and her family comfortable in the home of Lawrence and Linda Ellins, a couple that had to surrender their oceanfront home to Wells Fargo Bank to settle their debts. The couple was one of the many victims of the Bernard L. Madoff’s massive fraud scheme.
Neighbors and residents of the exclusive Malibu Colony were puzzled at first when they noticed that someone was occupying the Ellinses home when they knew it was already vacant and that Wells Fargo has jurisdiction over it. The Ellinses’ real estate agent Irene Dazzan Palmer was also surprised when Wells Fargo refused to show the house to interested buyers.
Cheronda Guyton, a senior vice president responsible for commercial foreclosed properties, was identified by neighbors spending time at the house over the summer. The clincher was when she hosted a rather lavish party last August and people even had to be ferried across from a yacht. Neighbors and residents became outraged.
Wells Fargo conducted an internal investigation on the matter and eventually concluded that “”a single team member was responsible for violating our company policies. As a result, employment of this individual has been terminated.” This swift and direct action on the part of Wells Fargo indicates that they want to nip the scandal in the but and make it appear that what Cheronda Guyton did was of her own accord and not sanctioned by the bank.
After terminating Guyton, the bank immediately listed the house for sale at $21 Million. Interested buyers who were eagerly awaiting the opportunity to buy this prime property were a little disappointed at the list price. The house is 3,800 square feet and sits on an 8,700 square foot lot. The property is believed to be worth between $12Million to $14 Million.
Really, how would you feel?
Update: 09-18-09 – Apparently this was not a true foreclosure, it was a negotiated settlement to settle other debt and the house was turned over to Wells Fargo to help satisfy the debt. Either way, the executive made a very poor decision.