“Altogether, Stumpf sold nearly 3 million Wells Fargo shares in 2016, which is almost 10 times the 351,991 shares he sold the previous year, according to SEC filings. His net profit on the 2016 sales amounted to $65.4 million.”
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CEO sold millions in Wells Fargo stock before fraud revelations
Former Wells Fargo Chairman and CEO John Stumpf sold $61 million worth of Wells Fargo (WFC) shares in the month prior to settling a long-running investigation that charged the bank with falsifying millions of customer accounts to boost sales and fees.
The following month, when regulators announced on Sept. 8 that they’d fined Wells Fargo $185 million for falsifying more than 2 million customer accounts to meet aggressive sales goals, the company’s stock price plunged and Stumpf was called on the carpet before Congress before finally resigning this week.
Stumpf pocketed $26 million in proceeds from that August sale — the shares in question were “incentive stock options” purchased at a discount to Wells Fargo’s current market price and then immediately sold at a profit — reflecting a small piece of the rich incentive pay that Stumpf collected during his tenure at the top of the bank.
However, the sale also raises a red flag of potential violation of insider trading rules that prohibit company insiders from profiting on stock purchases and sales based on unpublished corporate information, said Chicago securities lawyer Andrew Stoltmann.
More here…
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They should jail him for life, seize all of his assets, throw his family out of their home, (Like they did to millions of fraudclosure victims without second thought), and use his assets to pay restitution to all the victims he defrauded over the years.
Then go after the rest of the top execs who were most likely involved with the scams too!
With as much fraud that was exposed, you can’t say that they weren’t aware of it.
All the others I’m sure earned big profits from the stock options too!
Why has it become so difficult to enforce the laws? Equally!
You do the crime, you do the time!
A job title and a lot of stolen money should NOT give anyone a different set of rules!
If more of these thieves were put behind bars, the scams would start to disappear.
The person that walks in with a gun robbing the banks customers money gets caught, he goes to jail.
The top execs rob the customers money and get caught, they receive bonuses, stock options, and walk away free with millions.
What’s wrong with this picture???