Wells Fargo has said it had fired an employee who held a series of parties at a Malibu mansion seized by the bank from a couple who were swindled in the Bernard Madoff fraud.

"Our investigation concluded a single team member was responsible for violating our company policies. As a result, employment of this individual has been terminated," a statement from the bank said.

"We deeply regret the activities that have taken place as they do not reflect the conduct we expect of our team members."

Earlier reports said local residents had seen the employee, identified as Cheronda Guyton, spending several weekends at the 12-million-dollar home during the summer after it was taken over by the bank.

Guyton, a senior vice president responsible for commercial foreclosed properties, reportedly held several parties at the mansion, including one at which guests arrived from an offshore yacht.

The mansion had been turned over to the bank in May after its previous owners suffered massive losses in Madoff's multi-billion-dollar Ponzi scheme.