Bank of America to settle claims it defrauded schools and hospitals!
NEW YORK - December 8, 2010 - Attorneys general from 20 states reached an agreement that will require Bank of America to pay $137.3 million for its part in a bid-rigging scheme, according to the Securities and Exchange Commission (SEC).
The financial institution is accused of defrauding state agencies, municipalities, schools districts, hospitals and other non-profit organizations by rigging bids on municipal bond contracts.
According to a notice on its website, the company will pay restitution of $107.8 million to the counterparties affected by the practice and another $25 million to the Internal Revenue Service (IRS). An additional $4.5 million in legal costs will be paid to state attorneys.
The federal government showed leniency after Bank of America self-reported its potential wrongdoing.
"As previously disclosed, Bank of America was granted amnesty in 2007 by the Department of Justice for self-reporting evidence of possible wrongdoing before the industrywide investigation of these practices began and for continuing to cooperate with the Justice Department's investigation," a statement on Bank of America's website said.
