Friday, December 10, 2010
Zachary A. Goldfarb, Washington Post
Zachary A. Goldfarb, Washington Post
Bank of America fined $137 million in state fraud cases
Bank of America will pay $137.3 million to settle allegations that it defrauded schools, hospitals and dozens of other state and local government organizations.
The settlement stems from a long-running investigation into misconduct in the municipal bond business that raises money for localities to pay for public services.
Bank of America is accused of depriving local organizations of millions of dollars by engaging in illegal behavior when investing the proceeds of municipal bond sales.
The banking giant is accused of taking part in a conspiracy in which it and other banks paid kickbacks to win the business of municipalities seeking to invest the proceeds of bond sales before the money is ready to be spent.
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Posted by Editor on 12/10/10 at 10:43 PM •
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