Sunday, September 13, 2009

Bank exec borrows foreclosed estate

Another day, another story of a banking executive making a boneheaded move. And this one seems too unbelievable to be true.

A Wells Fargo honcho in charge of foreclosures decided to make herself right at home in a $12 million Malibu beach house, moving in and throwing big parties soon after it had been surrendered to her bank, the Los Angeles Times reports after talking to neighbors.

What could make this story even more outrageous? How about a dash of Bernard Madoff? The former owners of the home were victims of Madoff's Ponzi scheme. They lost a fortune in the fraud, their real estate agent told the Times.

Bing: Bank executives gone bad

The owners turned the house over to Wells Fargo last May, but the bank refused to show the house to potential buyers, the agent said. And then, neighbors say, the foreclosure boss moved in.

Neighbors in the gated community got a little suspicious, and began investigating this woman they say suddenly began living in the house. They got her name from community employees, who admitted to the Times that they issued her a homeowner's parking pass. They believe she is Cheronda Guyton, a Wells Fargo senior vice president responsible for foreclosed commercial properties.

The Times ran the license plate number of the Volvo parked at the 3,800-square-foot home and found it was registered to Guyton. Neighbors said that guests often visited the home where Guyton, her husband and two children lived. They said Guyton threw a huge party in August, bringing a yacht offshore and transporting guests back and forth from the beach.

Wells Fargo is remaining tight-lipped about the whole situation, saying it won't discuss specific employee issues for privacy reasons. But it promises to investigate the allegations. You can see pictures of the home here.

A sad and ironic story on so many levels.

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