Ex-Wells Fargo Executive Must Face SEC’s Case Over Fake Accounts

A former Wells Fargo & Co. executive lost her bid to throw out SEC allegations she sold stock worth $11.8 million while misleading investors after a federal judge in California allowed the case to go forward.

Carrie L. Tolstedt, who served as senior executive vice president of community banking, asked the U.S. District Court for the Northern District of California to throw out one of the Securities and Exchange Commission’s four claims against her. Her two statutory construction arguments don’t sink the agency’s claim, the court said.

The SEC in November 2020 sued Tolstedt over statements claiming the bank’s ...