Wells Fargo sells Malibu home that exec allegedly used for parties

A bank-owned Malibu house that was at the center of a public relations storm for Wells Fargo & Co. during the housing crisis has sold after nearly a year on the market.

The two-story beach house, which was lost to foreclosure by victims of Bernard Madoff’s fraud scheme and then allegedly used by a bank executive for parties, sold for $14.95 million, about $6.5 million less than the original asking price.

The name of the buyer was not disclosed.

Last year, Cheronda Guyton, a Wells Fargo senior vice president for commercial properties, was accused of occupying the home in the exclusive Malibu Colony area and holding social events there, including one at which some guests arrived by boat.

The situation came to light after residents of the gated community, who obtained Guyton’s name from security guards, complained. The incident brought to the forefront the issue of bank behavior during the crisis.

Wells Fargo said in a statement at the time that personal use of foreclosed properties violated company policies, and Guyton was fired.

Lawrence and Linda Elins had surrendered the home to Wells Fargo in May 2009 at a recorded value of $12 million. They had owned the home since 1996.

Built in 1990, the four-bedroom house has an open floor plan and walls of glass to take in the ocean views, according to the Multiple Listing Service. The home came on the market in September at $21.5 million, but the price was later reduced to $18 million.

lauren.beale@latimes.com