State charities, non-profits and government agencies eligible for $2.5 million
BALTIMORE (December 02, 2011)—Attorney General Douglas F. Gansler on Wednesday announced that more than 40 Maryland charities, nonprofits and government agencies will be notified this week that they are eligible to receive payments ranging from approximately $5,000 to over $300,000 as a result of a $67 million nationwide settlement with Bank of America made public last December.
“This settlement provides direct compensation to the victims of an illegal scheme by Bank of America and its co-conspirators,” said Attorney General Gansler. “These bids were rigged to enrich financial institutions and brokers who promised to deliver competitive bids to Maryland charities, nonprofits and government agencies.”
The total amount being paid to Maryland entities is approximately $2.5 million. The settlement resolves charges that Bank of America engaged in a bid-rigging scheme and other anti-competitive conduct that defrauded government agencies and nonprofits when they purchased municipal bond derivatives.
The settlement resulted from an ongoing investigation by the Maryland Attorney General’s Office and a multistate group of Attorneys General that focuses on the marketing and sale of municipal derivative investments.
Typically, government bond issuers use these investment contracts to reinvest the proceeds of tax-exempt bond offerings until the funds are needed. Each of the Maryland entities eligible to receive payment entered into one or more municipal bond derivative transactions with Bank of America between January 1, 1998 and December 31, 2006.
Maryland and the multi-state investigating group have also entered into similar settlements with UBS and JP Morgan.
See the announcement of the December, 2010 settlement: http://www.oag.state.md.us/Press/2010/120610.html
Source: Office of Attorney General Douglas F. Gansler