- Related: Bank VP in foreclosed Malibu home?
- More: Most Popular stories, videos and more
- More: Get breaking news alerts
"Well, a couple weeks ago, there was this huge party, and there was a big yacht offshore, and there was a dingy going back and forth taking all these people which got everyone's attention," comments Elaine Johnson, a neighbor.
But the problem was, this $12 million home was a foreclosed property that was turned over to Wells Fargo earlier this year, after the owners had been financially ruined by the ponzi schemes of Bernie Madoff.
Today, Wells Fargo officials confirmed that bank employee Cheronda Guyton was using the home for personal use.
In a statement released Monday, bank officials said, "Our investigation concluded a single team member was responsible for violating our company policies. As a result, employment of this individual has been terminated. We deeply regret the activities that have taken place as they do not reflect the conduct we expect of our team members."
Guyton, who lives in the Fairfax area, has not been seen publically since the news broke.
According to Wells Fargo, she was a senior vice president in charge of the bank's foreclosed commercial properties.
According to the Los Angeles Times, the prior owners tried to lease the house and even found several interested buyers, but Wells Fargo would not allow the property to be shown.
Neighbors in the exclusive Malibu Colony say Guyton and her family were seen at the home several times this summer.
Many of them are simply shocked.
'It's outrageous, it's unacceptable," adds Johnson.
Wells Fargo needs to apologize to Malibu for bringing it here, they really do. They need to apologize through the media and any other appropriate manners," says another Malibu Colony resident who wanted to remain anonymous, "it's just wrong."
Today Wells Fargo officials said the owner of the Malibu home had agreed to keep their home off the market for an unspecified period of time.
The bank is planning to put the home back on the market sometime later this year.