Nov. 14 (UPI) — The U.S. Securities and Trade Fee has charged two ex-Wells Fargo executives for allegedly deceptive traders in promoting methods.

Former Wells Fargo CEO and Chairman John Stumpf, and former head of Wells Fargo’s Neighborhood Financial institution, Carrie Tolstedt, have been charged Friday, a SEC assertion mentioned.

Stumpf has agreed to pay a $2.5 million penalty in a settlement, based on SEC filings, and the motion accusing Tolstedt of commiting fraud is being litigated.

Tolstedt publicly referred to Wells Fargo’s “cross-sell metric” as a measure of the corporate’s success even supposing “unused, unneeded, or unauthorized” providers inflated the metric from mid-2014 via mid-2016, based on SEC’s grievance. She additionally allegedly signed deceptive sub-certifications in regards to the accuracy of public disclosures containing materially false and deceptive statements.

Tolstedt’s lawyer, Enu Mainigi, described her consumer as “an trustworthy and conscientious government,” in an emailed assertion to CNBC.

“It is unfair and unfounded for the SEC to level the finger at Ms. Tolstedt when her statements weren’t solely true but in addition completely vetted by others as a part of Wells Fargo’s insurance policies, procedures and techniques of controls,” Mainigi mentioned within the assertion. “Ms. Tolstedt acted appropriately, transparently and in good religion always. We look ahead to setting the document straight and clearing her identify.”

Stumpf signed and licensed deceptive statements with the SEC in 2015 and 2016 about Properly Fargo’s Neighborhood Financial institution cross-sell technique and its cross-sell metric, the SEC order towards him discovered, despite the fact that he was made conscious that the corporate was deceptive the general public in regards to the cross-sell metric.

“If executives talk about a key efficiency metric to advertise their enterprise, they have to accomplish that absolutely and precisely,” mentioned SEC’s Division of Enforcement Director Stephanie Avakian in a press release. “The Fee will proceed to carry accountable not solely the senior executives who make false and deceptive statements but in addition those that certify to the accuracy of deceptive statements regardless of warnings on the contrary.”

Stumpf misplaced his job in 2016 after the scandal over the inflated metric and his successor, Tim Sloan, misplaced his job over the identical scandal.

Underneath the $2.5 million settlement Stumpf agreed to, he would not should admit or deny the costs.

In February, Wells Fargo agreed to pay $three billion to resolve allegations about “unrealistic” gross sales targets that led to the creation of tens of millions of pretend accounts with out clients’ information.

The settlement mentioned the corporate collected tens of millions of {dollars} it wasn’t entitled to, harmed clients’ credit score rankings, and unlawfully misused clients’ delicate private data.

The regulator mentioned $500 million from the financial institution’s settlement might be mixed with cash from Stumpf’s penalty to be distributed to traders.