Wells Fargo Exec Spotted Squatting, Throwing Lavish Bashes At Lender-Owned, $12M Oceanfront REO Once Owned By Madoff Victims, Say Neighbors

In Malibu, California, The Los Angeles Times reports:

• Bernard L. Madoff's massive fraud stunned some of the wealthy denizens of Malibu Colony, especially when a couple devastated by the scheme surrendered their oceanfront home to Wells Fargo Bank. But some neighbors say the real shocker came when they saw one of the bank's top executives spending weekends in the $12-million beach house and hosting eye-catching parties there.

• What's more, Wells Fargo spurned offers to show the property to prospective buyers, a real estate agent said. "It's outrageous to take over a property like that, not make it available and then put someone from the bank in it," said Phillip Roman, an 18-year Colony resident who lives a few homes away from the property. Residents identified the house's occupant as Cheronda Guyton, a Wells Fargo senior vice president who is responsible for foreclosed commercial properties.

For more, see Wells Fargo exec used Malibu Colony home lost by Madoff-duped couple, neighbors say (A top bank executive was seen spending weekends and hosting parties in the $12-million beach house. The bank says it will 'conduct a thorough investigation of the allegations' by neighbors) (if link expires, try here).

For story update, see The Wall Street Journal's Deal Journal Blog: Wells Fargo Responds to Malibu Foreclosure Flap (Wells Fargo released a statement responding to the escalating flap over allegations that one of its senior executives was partying in a $12 million Malibu pad that the bank had taken from a struggling home owner).