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Former Wells Fargo CEO fined over $17M for sales scandal

This is the first time federal regulators have punished individual executives for Wells Fargo's wrongdoing in the sales practices scandal.
Credit: AP
FILE - In this Tuesday, Sept. 20, 2016, file photo, Wells Fargo CEO John Stumpf testifies on Capitol Hill in Washington, before the Senate Banking Committee. Wells Fargo’s embattled CEO Stumpf is out effective immediately, with President and Chief Operating Officer Tim Sloan taking over as the head of the one of the nation’s largest banks, the company announced Wednesday, Oct. 12, 2016. (AP Photo/Susan Walsh, File)

NEW YORK — Federal regulators have slapped former Wells Fargo CEO John Stumpf with a $17.5 million fine for his role in the bank's sales practices scandal. 

They're also suing five other former Wells Fargo executives for a total of $37.5 million, for their individual roles in the bank's practices. 

This is the first time regulators have punished individual executives for Wells Fargo's wrongdoing. 

The bank has paid hundreds of millions of dollars in fines and penalties for encouraging employees to open up millions of fake accounts in order to meet aggressive sales goals. 

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Credit: AP Photo/Matt Rourke, File
This Nov. 29, 2018, file photo shows a Wells Fargo bank location in Philadelphia.