Wells Fargo & Co. was assessed $85 million in civil penalties by the Federal Reserve yesterday for steering creditworthy potential borrowers into more costly subprime mortgages, the San Francisco Business Times reported.

The company denied any wrongdoing; the investigation covered lending practices from January 2004 to September 2008.

“The alleged actions committed by a relatively small group of team members are not what we stand for at Wells Fargo,” said Chairman and CEO John Stumpf in an interview with the Business Times. “Fair and responsible lending practices have been at the core of our culture, and they will continue to guide us as we work closely with the Federal Reserve to provide restitution to customers who may have been harmed.”

Before and during the investigation, the company said it voluntarily provided restitution in the form of reduced interest rates or cash refunds to about 600 borrowers at Wells Fargo Financial, a non-bank subsidiary that was closed last year. Wells Fargo also fired the individuals involved.

The $85 million fine is the largest the Fed has assessed in a consumer-protection enforcement action.