Former Wells Fargo Executive Settles for $40,000 in Penalties and Leaves Banking Over Misconduct

A former senior manager at Wells Fargo, Norman Desembrana, has agreed to pay a $40,000 fine and permanently leave the banking industry following accusations of misconduct. The Office of the Comptroller of the Currency (OCC) issued a consent order against Desembrana for allegedly misleading customers and engaging in practices that were unsafe and unsound.

According to the OCC, from October 2021 to March 2022, Desembrana intentionally concealed a significant backlog of unprocessed customer checks at the bank’s Philadelphia Lockbox facility. He reportedly failed to report the backlog during internal meetings and directed employees under his supervision to produce false bank reports to hide the extent of the unprocessed checks.

When bank customers raised concerns about the delays, Desembrana allegedly provided misleading explanations to placate both customers and bank employees. The OCC stated, “These violations and practices were part of a pattern of misconduct that resulted in more than minimal losses for the bank and harmed the interests of its depositors.”

The OCC’s findings highlighted that Desembrana’s actions showed “personal dishonesty, willful or continuing disregard for the safety and soundness of the bank, and reckless disregard for the law or applicable regulations.” Despite not admitting to or denying the allegations, Desembrana consented to pay the civil penalty and agreed to a ban from working in the U.S. banking industry, unless he obtains prior written approval from the OCC and a financial institution willing to employ him.