LOS ANGELES, Sept. 10 (UPI) -- Wells Fargo says it will look into reports that a bank executive has been using a California home surrendered to the bank by victims of swindler Bernard Madoff.

The former owners, Lawrence and Linda Elins, lost their $12 million Malibu beachfront property to the bank because of Madoff's Ponzi scheme. Neighbors say a top Wells Fargo executive has been spending weekends and having parties at the house, the Los Angeles Times reported Thursday.

A real estate agent who worked with the Elins told the newspaper Wells Fargo has declined offers to show the property to interested buyers.

Residents of the area identified the Wells Fargo executive who is using the house as Cheronda Guyton, a senior vice president in the bank's foreclosed commercial properties section, the Times said.

The newspaper said it could not reach Guyton for comment and Wells Fargo declined to comment on the executive. However, the bank said in statement it would "conduct a thorough investigation" of the neighbors' allegations.

The statement said the bank's ethics code prohibits employees' personal use of property that had been surrendered to the bank satisfy debts, the Times said.