Wells Fargo Forecloses on $12 million mansion, executive uses home to party

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.

19 thoughts on “Wells Fargo Forecloses on $12 million mansion, executive uses home to party”

  1. Homes for Sale in Ogden Utah

    It’s disgusting what happened to the couple Lawrence and Linda Ellins, knowing that their home is being used by the bank executive for her personal purpose and even using it to host a party. Thankful that bank official was fired because if not maybe he will continue do that in the future.

  2. That would absolutely outrage me. To have someone take advantage of my home and use it for those purposes, I would somehow find a way to get my house back!

  3. That would probably bother anyone, but it shouldn’t. Most likely the owner of that home bought a house way beyond his means and deserved to be foreclosed upon. I have seen so many of these McMillionaires crash and burn. I think its funny.
    .-= Justin´s last blog ..Colombia Real Estate and Security. =-.

  4. That is a clear abuse of power, I’m glad she was let go after they discovered what she was doing. Talk about taking advantage of someone’s problems and their business. If it were up to myself, I would have charged her rent. Heh

  5. Mike In Dallas Real Estate

    I would be mad also, But what really can you do. They own the house. They can do with it what they please

  6. Buenos Aires real estate

    Yes Mike they are tecnically the owners of the house but something there should be done, dont you think?
    .-= Buenos Aires real estate´s last blog ..Punta del Este – Seaside Luxury Property =-.

  7. That kind of thing makes me sick to my stomach. Forcing people from their homes and then using the home to entertain your corporate suit colleagues? This is exactly what’s wrong with the world.

  8. Seems like since they own the house, Wells could do what they want, but that employee is not the owner, the corporation is. Using it for personal reasons doesn’t have any corporate value. Now they could have converted it into an Exec use house for entertaining big clients.

    just sad to see that foreclosures are happening in every price range.

  9. Costa Rica Real Estate

    Interesting story, and yes, it is indeed sad to see these kinds of things occuring at all levels

  10. Robert Worthington

    I think that is sick. What happens when the home gets trashed from the party?
    .-= Robert Worthington´s last blog ..Manitowoc Professional Police Association needed to be recognized by Manitowoc WI Real Esate Agent Robert Worthington =-.

  11. Smithfield Utah Real Estate

    Just an update on this, they did fire the executive, and I think it was the right thing to do. It’s good to see some corporations are still descent when it comes to these types of things.

  12. Since Wells Fargo listed the house for $21 Million and it is believed to be worth $12 to $14 million, it makes me wonder if another Wells Fargo top executive has plans for using the house. In this market it probably won’t sell for that much above the value. Why would they price it so high? It gives someone more time to use it.
    .-= Jill´s last blog ..Houston’s August market posts the lowest numbers of the summer =-.

  13. Goes to show the actions of one person can give a bad reputation to a big corporation. What a foolish thing to do on her part but our actions always have consequences, Im sure this press will not bold well for Ms Guyton in looking for a new job.
    .-= Tampa Florida Real Estate´s last blog ..Town & Country Rental Home =-.

  14. Sounds like the usual corporate policy when it hits the fan – roll someones head and hope it’ll go away!
    .-= RentalRunner´s last blog ..How to keep your home secure =-.

  15. Well you have to admit the executive sure had balls to do that, which is probably how she got to be a top executive in the first place. That being said, how horrible and stupid. Why would anyone risk their career like that? She could have probably easily afforded to rent a place. Brewer Caldwell

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