Wells Fargo Fires Exec Who Partied In A Foreclosed Malibu Pad

Posted by: Chris Palmeri on September 14, 2009

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Wells Fargo confirmed today that it has fired the executive who partied in a foreclosed Malibu beach house this summer.

The Los Angeles Times first reported on Friday that 39 year old Cheronda Guyton, a Wells Fargo senior vice president responsible for foreclosed commercial properties and a seventeen year veteran of the bank, spent weekends at the house, hosting parties that caught the attention of neighbors.

The 3,800 square foot, beach front home had been owned by a couple who lost their money with scamster Bernie Madoff. It was valued at $12 million when it was taken back by the bank in May.

Malibu Mayor Andy Stern, who also happens to be a real estate agent, told Reuters that the house could lease for $150,000 a month.

Wells says the house was kept off the market under an agreement with the prior owners. “Our investigation concluded a single team member was responsible for violating our company policies,” Wells said in a statement. “As a result, employment of this individual has been terminated. We deeply regret the activities that have taken place as they do not reflect the conduct we expect of our team members.”

Malibu Colony is one of the city’s first and still most exclusive neighborhoods. It has been the playpen of celebrities going back to Bing Crosby’s days.

Here’s a shot of the kitchen area.

106MalibuColony09.jpg

Reader Comments

BABA BOOEY

September 14, 2009 06:49 PM

PARTY ON WAYNE, PARTY ON GARTH!

MadMommy

September 14, 2009 07:07 PM

I hope that witch can't find another job anywhere. This is the kind of thing that needs to stop. The banks get a bail out, the tax payers get the bill but meanwhile the banks foreclose on American families and let their employees have fun at the expense of everyone else.

When you can't pay your bills, you get a penalty. What penalty did this VP get? Lost her high paying job? She should owe the bank the cost of renting the property. 150,000 per month? I'd say that's a fair price since the RE agent had a renter willing to pay that much.

Just sending here home isn't enough to satisfy the rest of us trying to make our minimum payments to the bank. SHAME on you Wells Fargo!

James Bishop

September 14, 2009 07:31 PM

Why does anyone care about this? The neighborhood thought people were enjoying a view that they had not ‘earned?’ The place should be transformed into a homeless shelter, and people bussed in from the local parks. Tell me, in a way I will believe, that the 'owners' did not know they had invested in a scam. People who were smart enough, or could hire people who were smart enough, to know the whole thing was a rip off of the last people to come under his spell, enabled Madoff in his Ponzi scheme. Those with a $12,000,000 beach house, and investments with the Madoff conspiracy, will earn no tears from me.

spaceWeepul

September 14, 2009 07:41 PM

Sounds like some "outside-of-the-box" thinking went on. It's easy to see how someone would be tempted. I wish I had been invited.

Detlef

September 14, 2009 08:43 PM

Obviously, with a name like Cheronda, it should have occurred to her that she would stand out like a sore thumb in Malibu!

Waitaminute

September 14, 2009 09:34 PM

Wells says the house was kept off the market under an agreement with the prior owners.

What kind of agreement is this? If my house gets foreclosed on will I still have a say on it's disposition?

I think not.

Paul D

September 14, 2009 10:05 PM

Finally, a report on a small breath of justice. Thank you. Its encouraging.

Stanley C Richardson

September 14, 2009 10:58 PM

Hmmm, I wonder how many more bank executives across the US are doing the same thing but just haven't been caught?

Johnny Dollar

September 15, 2009 07:57 AM

Glad to see this scumbag canned...

Edy

September 15, 2009 08:50 AM

Good for him...Execs think they are untouchable & above the law.

Karl

September 15, 2009 10:31 AM

Maybe Wells Fargo was going to keep this property and pay for it with the profits from the 'secret life insurance policies' it has on its employees, right? You can 'Google' this- 'Bank Executives Profiting On The Death Of Employees', and read that article. I believe that Wells Fargo has $17 billion in 'secret life insurance policies' on its employees, correct?

Stonem

September 15, 2009 11:31 AM

It amazes me how executives like Mr. Guyton feel entitled to this foreclosed property. They see an opportunity and feel they have an entitled advantage to their benefit.

j. sackett

September 15, 2009 11:37 AM

Why did it take so long??????

Tom

September 15, 2009 12:09 PM

Just another example of the entitled nobility doing its thing.

Lord

September 15, 2009 12:30 PM

The snooty neighbors didn't want the riffraff of bank vps in the neighborhood.

ERS

September 15, 2009 01:43 PM

Awesome kitchen. I couldn't have resisted partying there either.

Stan Kansas

September 15, 2009 02:06 PM

Bravo!!! This story had me really pissed off, enough so that I had considered closing our accounts with WF.
Glad to see that it was just one employee. WF, you did the right thing! Thank you.

James Martin

September 15, 2009 02:13 PM

I am sure they will quietly hire him back later.

craig

September 15, 2009 02:30 PM

shame on her. It does like like quite the property to have parties in. she should have figured someone would notice.....

quigzgrl

September 15, 2009 07:24 PM

"Shame on you Wells Fargo" Give me a break. What kind of an idiot is going to hold an entire corporation accountable for the extrememly poor judgment of one obviously idiotic employee. I would hope if one of my coworkers were stealing from our company I would not be held accoutnable for their stupidity. It is judgmental people like Madmommy that create so much controversy & finger pointing in this country with out knowing their facts. Ms. Guyton is a bonafide thief and has been let go from her position, move on.

Snoz

September 16, 2009 04:08 AM

The real story is not merely about a WellsFargo employee using one of its foreclosed property for a personal party. Rather, it is how WellsFargo as well as other Big Banks has kept thousands of foreclosed homes from the market. The FDIC and Federal Reserve have changed the accounting rules that now allow banks to keep non-performing real estate in their books for indefinite time. This rule change is an attempt to prop-up real estate prices as well as keep the banks solvent under the illusion that the foreclosed real estate mortgage is not "up-side down." This special privilege is available only to banks, not to private or other non-financial corporation. The deception, illusion and fancy talks of the FDIC and Federal Reserve will be exposed when more banks fail. Wallowing in their deepest financial crisis the greedy bankers are desperate. Not satisfied with nickel-and-diming the consumer through tricky credit card languages, the Big Banks have looted the taxpayers' wealth to the tune of one trillion dollars courtesy of the Federal Reserve which has purchased these non-performing "asset" at face value.

Greg

September 16, 2009 05:03 AM

Seems like this joke, coming true:

http://www.youtube.com/watch?v=ZoPUDbqs5zc

Jimmy C

September 16, 2009 04:28 PM

Mean spirited clowns commenting on this idiot bank employee. Bad times in the USA!

Phil

September 17, 2009 06:07 AM

I know everyone is mad at the executives that skipped away from taxpayer bailed-out banks with bonuses, but this story is a big "so what?"
The foreclosed owners owed only $3M on their $12M house, so they made a special agreement with Wells where they required Wells to keep the property off the market for a time (who knows why, maybe to let the market get better).
So it is an empty house that Wells can't lease or sell for that time. The evil executive threw some parties in the otherwise empty house. It might have violated Wells corporate rules, but beyond that big deal, so what, why waste the view?
I imagine Wells would not have given a cr*p except for the hysterical publicity.

CJ

September 22, 2009 10:18 AM

Scolding the exec is superficial and probably not the only one doing it. The real question should be: what other back room deals does Wells Fargo have to keep their non-performing assets "off the market", and possibly distorting a state of INSOLVENCY.

Mr Jimmee

September 23, 2009 04:05 PM

This isn't the first indescretion involving Wells and probably won't be the last. Let's not forget about the much-ballyhooed Vegas junket for their top execs earlier this year, which had to be cancelled because it got leaked out, and it wasn't meant for common knowledge. You should have seen their CEO try to tap-dance out of that one. Looks good on 'em!

Jenzy Green

January 7, 2010 10:31 PM

Good story.I don't believe a word of it.
FIRED? Are you kidding me? Paid off is more like it.Someone like this in her position and for so long could open up PANDORA'S BOX!Will she?Not if THE GREAT AND POWERFUL OZZ has anything to do with it.

She can probably buy that house now.
HUSH,HUSH,SWEET CHARLOTTE.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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