The Securities and Exchange Commission today charged Bank of America Securities (BAC) with fraud in connection with improper bidding practices involving investment proceeds on municipal securities.
“To settle the SEC’s charges, BAS [Bank of America Securities] has agreed to pay more than $36 million in disgorgement and interest. In addition, BAS and its affiliates have agreed to pay another $101 million to other federal and state authorities for its conduct.
“This ongoing investigation has helped to expose wide-spread corruption in the municipal reinvestment industry,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “The conduct was egregious — in return for business, the company repeatedly paid undisclosed gratuitous payments and kickbacks and affirmatively misrepresented that the bidding process was proper.”
BofA will pay a total of $137 million in fines.
At last check shares of BAC were trading at $11.65, down $0.01, or 0.13 percent.