The previous owners of a $12 million Malibu Colony residence lost their exclusive retreat when the Bernie Madoff scam was exposed. Now a Wells Fargo executive is accused of tossing lavish parties at the $12 million foreclosed home in Malibu Colony. Inside Bay area notes the "couple was devastated" by the Madoff Ponzi scheme and "were forced to surrendered their oceanfront home to Wells Fargo Bank."

Bernie Madoff Scam Stretches to Malibu Colony, Wells Faro Exec (Image: WENN)

The report notes that the accusations are that "one of the bank's top executives (was) spending weekends in the $12 million beach house and hosting eye-catching parties there. What's more, a real estate agent said Wells Fargo spurned offers to show the property to prospective buyers."


"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 said, according to the report.

Ledger Pop has more on the bank officer and the wild tale including a link to a picture of the property on the shore. Close up pictures of the fashionable dream home in the high end community in Malibu are here at the LA Times as well.