Exec. In Charge Of Foreclosures Moved Into Bank-Owned Malibu Beach House, Neighbors Say

MALIBU, Calif. — A Wells Fargo & Co. executive who oversees foreclosed properties hosted parties and spent long summer weekends in a $12 million Malibu beach house, moving into the home just after it had been surrendered to Wells Fargo to satisfy debts, neighbors said.

The previous owners of the beachfront home in Malibu Colony – a densely built stretch of luxury homes that has been a favorite of celebrities over the years – were financially devastated in Bernard Madoff's massive fraud scheme, real estate agent Irene Dazzan-Palmer said.

The couple signed the property over to Wells Fargo last spring, and the bank subsequently denied requests to show the house to prospective buyers, Dazzan-Palmer said.

Residents in the gated community told the Los Angeles Times that a woman they believe was Cheronda Guyton took up occupancy at the home in May. Residents said they obtained Guyton's name from the community's guards, who had issued her a homeowner's parking pass.

Residents also wrote down the license plate number of a 2007 Volvo sport-utility vehicle they say was parked in the home's garage. A check of state motor vehicle license plates by the Times found the vehicle was registered to Guyton.

Guyton is a Wells Fargo senior vice president responsible for foreclosed commercial properties, resident Phillip Roman 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 Roman, who lives a few homes away from the property.

Residents said Guyton, along with her husband and two children, often hosted guests at the home, including a large party the last weekend of August. Malibu Colony is about 25 miles from downtown Los Angeles.

Wells Fargo said in a written statement that it would conduct a thorough investigation of the allegations by neighbors, but said it wouldn't "discuss specific team member situations/issues for privacy reasons."

Guyton's home number is unlisted, and attempts to reach her at her Los Angeles office after work hours were unsuccessful.

The bank's agreement with the prior owner required it to keep the home – a 3,800-square-foot, two-story structure built in the early 1990s – off the market for a period of time, Wells Fargo said in the statement. The bank said it planned to list the property for sale soon.

Comments

[consultant55]

Can it get any worse?

Don't answer that.

[2centsplain]

Madoff cheats the investor. Guilty. Gets 150 years.
Elins stiffs the bank. Guilty. Certainly borrowed more than it was worth.
Wells Fargo shows bad taste in allowing employees to use their assets. If Wells Fargo actually owns the house isn't this their problem?

[croman]

As someone close the issue, here are a few more points to think about:

1. Fringe benefits such as company cars, trips, or in this case, houses, are declared to the IRS as additional income each year. I live in the Colony - houses in the summer months rent for $100,000 (after the summer that drops radically*) - so it looks like Miss Wells Fargo Forelosure Lady will now legally need to declare $300,000 extra dollars this year - FAT CHANCE that will happen!

2. Wells Fargo is a recipient of Bailout money from the federal and state government (our Sate that is BROKE). This house in malibu could sell for 12Million dollars tomorrow. You all paid for this lady's summer party. All. Of. You.

3. At least 3 Realtors were repeatedly denied information, access to the house and explanation upon calling Wells Fargo to see about showing the house to prospective renters and buyers.

Go chew on that Hufffies!! More info is posted on my L.A. society blog called Daily Truffle.

[christina80]

She should be thoroughly embarrassed by her actions. I guess that public shaming has lost much of its power to keep people from playing in moral gray areas. In light of recent bank excesses, you would think that Guyton and her employer would have more sense.

On a side note, I wonder if race had any impact on sharpening the focus of the observant residents. It would be interesting to find out how many other minorities own/rent homes in that community.

This is a link to her picture

http://books.google.com/books?id=vcIDAAAAMBAJ&pg=PA36&lpg=PA36&dq=Cheronda+Guyton&source=bl&ots=EfK5lHmKz8&sig=h4bgHume_-

[stillsmokin]

"On a side note, I wonder if race had any impact on sharpening the focus of the observant residents. It would be interesting to find out how many other minorities own/rent homes in that community.­"

Observant residents? I find this to be a rascist statement.­..like you think only white people live in malibu.

I'm guessing you do not live in California.

[DALSF]

I'm with "still smokin." You don't live in California. I've seen photos of Usher at Malibu Colony. Last time I look, he was Black.

Also, given that some of the finest faces/bodies in music, movies, TV and modeling right now are black, and given that Guyton was a former Miss Tennessee (or something like that), she is quite beautiful -- if stupid -- and I'm not sure her presence would have bothered anyone other than the fact that I'm positive all the neighbors knew the situation and that this behavior is out-of-line.

[christina80]

Well you are right… I don’t live in CA and I have never been to Malibu, or more specifically to Malibu Colony. I live in a part of the country that is quite diverse as a whole but also has many ethnically homogonous neighborhoods. I don’t think that my “wondering” about the racial mix of residents in this particular gated community is out of line. I also don’t think that calling the residents “observant” is anything but accurate..­.

1. “Residents in the gated community told the Los Angeles Times that a woman they believe was Cheronda Guyton took up occupancy at the home in May.”

2. ”Residents said they obtained Guyton's name from the community's guards”

3. “Residents also wrote down the license plate number of a 2007 Volvo sport-utility vehicle they say was parked in the home's garage.”

4. “ Residents said Guyton, along with her husband and two children, often hosted guests at the home, including a large party the last weekend of August.”

I don’t know were you live.. but in my neck of the woods, the above qualifies the folks of Malibu Colony as “observent­.” If you think I made a racist statement by declaring them so… I sugest it is you who has the issue, not me.

[BluestateGuyInTX]

Ah, the corruption of the last stages of empire. Isn't it ugly.

[tucsoncindy]

I used to work for a Trustee Co. that handled the foreclosures the Bank acquired. Unless the laws have changed, it was illegal for the employees to "Bid" on properties that had reached the final foreclosure status. A few years after I left this company, I read in the paper the president fo the company and a few employees were arrested for bidding on properties that were in foreclosure status.

What are the laws and rules for the Banking Industry..­.ie Wells Fargo

[DALSF]

Well, there's the problem. Wells Fargo does not seem to know that there ARE any laws covering THEIR questionable business practices. Their conduct is despicable and many coming to light nationwide: two class action suits, Congressional Inquiries, the lowest modification rate of all the large lenders. Wells Fargo is being sued by the City of Baltimore; that story is one of the saddest I have ever heard; purportedly they gave bonuses to their executives for selling sub-prime loans to Black and Hispanic people even when the families could have afforded and should have been granted a normal loan and good rates. Check this out. http://facesofforeclosure.com/?cat=74

The Malibu Colony story is an "amusing" aside compared to what that bank is doing across the country. They truly do need to lose their banking licences (if there be such a thing), and spend time in prison reading up on what it means to be an American -- in the original sense of the word.

[TotalRecall9]

Not only should she be fired, but she should have criminal charges brought against her and Wells Fargo pay a big fine. This is ridiculous.

[midbikecrisis]

In that my tax dollars were given to Wells Fargo, I believe I technically own a share of that home. I'd like to book it for the weekend of October 29th. Please have my parking pass ready.

[DALSF]

I'm with you. Can I come visit? Or perhaps have my own weekend? I've paid LOTS of money in taxes through the years. Wells Fargo is thinking of taking my home also . . . they just can't decide if they actually want to modify any loans with all the taxpayer dollars they have or just take them.

Selfishly, I didn't realize that they are using them for their own staff. I'll do a better of yard work now in the event a Wells Fargo executive moves into my modest home, they won't be offended by the dry lawn (I just hate the thought of wasting all that water . . . for for Wells Fargo. Hey!)

I would love to hobnob with those folk and share my TV-script ideas with them . . . you know, the ones where the larcenous lenders get eaten by sharks offshore -- will sharks eat sharks?

[ripples]

There is a lesson in this story - NEVER trust your neighbors, especially if you are banker in a silk stocking neighborhood

[rudolph]

Remember when Jim Hardy was the face of Wells-Fargo???

[DALSF]

Remember when Wells Fargo was actually a good bank to bank with? Decades ago, but it was. Sadly, the people in their branches are fine people. And if you buy them a drink you can find out how little they think of their disorganized organization.

[garymc8]

CEO's live in a completely different world than us. DIFFERENT RULES, DIFFERENT DEFINITIONS, DIFFERENT COMPENSATION PKG'S. AMERICA needs to control these ROBBER BARONS who are making a nifty comeback. Any one for some enforcement of ANTI TRUST ACT? We think of a bonus as that rarely received "extra" pay for doing a stellar job and sharing in the companies PROFITS. They TAKE bonuses regularly for FAILURE as opposed to success. We the working class/middle class define that as STEALING. They refer to it as an executive compensation pkg.

[Littlewords]

This VP is accountable for potential misappropriation of shareholder assets and may be eligible for a gross misconduct termination.

[IWantTofu]

Sort of like taking the corporate jet for personal use and not reimbursing the company nor counting its use as income.

[mamazboy]

Well said, garymc8! Sooooo true.

[PerryWhite]

Would the neighbors like it better if they boarded the house up?

[Littlewords]

Why does that have to be the alternative? There are other options; turn it over leasing business, put it up for sale, rent the unit to a legitimate party.

[econobiker]

It was supposedly available for renting at $60,000 a month or something like that...

[MominAmerica]

OMG! I can't even believe you wrote that.

[DALSF]

Are you serious?

Coldwell Banker reserved the url for the house in March 2009: www.106MalibuColony.com. Beachfront property is difficult to come by. This property is stunning -- if I could come up with $12 mil, I'd consider it. Apparently people DID want to see it and it was not being shown.

Of course, this could all be a ruse between the bank and Coldwell Banker: What a marketing message: "A house so desirable, so stunning, that a bank executive risked her job just to hold a few summer parties here." Place will probably sell in days now.

I'm just saying . . . I DO need to contact the agents. I'm sure they haven't thought of repositioning their property with this new message.

[Hank007]

Didn't the stock holders buy stock in WFC to make money, including selling off foreclosed assetts, and not to supply management with nice homes at stock holder expense?

[CraziesAreRunningTheShow]

Cheronda? Care to take a guess.

[opinion8td]

A guess at WHAT exactly?

[EBE]

I don't agree with what is being done at all but, Wells Fargo defense could be that the foreclosed property is considered what is called an OREO (Other Real Estate Owned) and as a bank they can do with that asset as they see fit. If they think that the housing market is down and they are looking at a potential loss by selling they can hold on to the property as long as they want and sell when the market recovers. They could argue that they have someone staying there to make sure it doesn't get vandalized or broken into.

I had a fellow banker tell me one time that they had to foreclose on a small hotel one time and part of the loan officer's "punishment" was that he had to stay there at night to keep the vagrants out.

Once again I don't agree with it but this could be Wells Fargo's argument.

[croman]

That is what they are saying - but the woman had a party so ... she wasn't exactly a caretaker! also there have been zillions of people trying to show the house the best realtors in town havent been able to get in there to see it --- they have been given the run around by Wells Fargo all summer. Incidentally the house is NOW listed at $21,500,000 - so I don't know if the "poor market" case works ... what timing to list it right after the LA Times article surfaces! My family was quoted in the article and interviewed by ABC and NBC - as we live in the Colony. I've written some more interesting deets on my website Daily Truffle - including the listing agent - friend and fellow LA Native - Chad Rodgers - which was on the TV Show Million Dollar Listing and has been renting homes in the colony since we were 17.

Here are some good links:
Wells Fargo lists Malibu beach house for $21,500,000 after a day of beating in the press! on Daily truffle www.dailytruffle.net
http://www.chadrogers.tv/
www.106malibucolony.com/

[DALSF]

Well, now, there's the rub. I thought it was only $12 million so I was moving money around. $21 million? Two problems with that price, I think.

1) That ocean is awfully close to the homes and I don't see breakwaters -- I have stunning shots from around 1980 when not-so pacific Pacific Ocean waves were going completely over homes at Stinson Beach (Marin County, California). Made the front page of The Chronicle at that time.
2) It looks to me like you can see neighboring houses from a few of the rooms. For $12 or $21 million, I absolutely don't want to see or hear my neighbors.

As for a planted story, I agree (as a former journalist), but I don't think so in that the house address was registered in March so someone planned on doing something with it.

[DALSF]

Again, if that were true, Coldwell Banker would NOT have been given the listing in March 2009 and/or they would have been given the listing on the condition that private security be hired to oversee the property until it is sold and/or someone could have been hired to "babysit" the home until sold. I've seen both scenarios done in expensive homes in Marin County California.

Wells Fargo does NOT have a leg on which to stand. The company is obviously mismanaged -- talk to any of their employees -- and this is obviously running up and down the line. The right hand does NOT in fact know what the left hand is doing.