Friday, January 28, 2011

Bank of America fraud settlement to go ahead



The largest bank in the United States, Bank of America, has agreed to pay nearly $140 million to settle a fraud case with the US Department of Justice.


Source :Kuala Lumpur News:Wednesday 8th December, 2010


The Bank of America has agreed to pay nearly $140 million to settle a fraud case. 

The US Department of Justice has accepted a deal following a four-year investigation by US authorities into anti-competitive practices by the Bank of America in which employees rigged bids in the marketing of financial contracts linked to municipal bonds. 

The municipal bonds were sold by government departments, local councils and non-profit groups in the US to raise money for local services, including schools. 

Prosecutors said there had been a criminal conspiracy to rig bids on investments linked to the bonds. 

The Bank of America was the only financial institution to voluntarily admit to wrongdoing. 

It was granted amnesty from prosecution in return for cooperation in the investigation.

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