Bank of America has agreed to a $67 millionĀ settlement with severalĀ states including Florida amid an investigation into allegationsĀ members of the bank took part in aĀ scheme involving bidsĀ on municipal bond derivatives.
The settlement is the resultĀ of the involvement of individuals atĀ Bank of America āin a nationwide scheme to allegedly rig bids and engage in other anticompetitive conduct relating to municipal bond derivatives that defrauded state agencies, local governmental entities and not-for-profit entities,ā according toĀ a Florida Attorney Generalās Office press release.
A joint federal and state criminal and civil investigation found that between 1998 and 2003 āBank of America and other financial institutions and brokers allegedly rigged bids, improperly assisted in the bidding process and submitted non-competitive ācourtesyā bids on these investments,ā according to theĀ press release.
āThe alleged schemes enriched financial institutions or brokers at the expense of state agencies, local governmental entities, and nonprofit organizations,ā the release goes onto say.
Entities in Florida such as cities and nonprofits found to have beenĀ āinjuredā by the practices are eligible for a slice of the $5.2 million awarded the stateĀ in the settlement.
The investigation into the matter began after Bank of America officials self-reported the āwrong-doingā to the U.S. Department of Justice, according to the attorney generalās office.
