Bank of America
Bank of America Pays $515 Million for Mutual Fund Late Trading
On the eve of their merger, Bank of America and FleetBoston Financial, paid a total $515 million to settle claims of “late trading” of mutual-funds as part of the largest mutual fund scandal in history. The firms also agreed to reduce the fees investors pay by $160 million over a 5 year period, federal and New York state authorities said. Eight members of the board of directors of Nations Funds, Bank of America’s group of mutual funds, also will be required to resign their positions within a year for their alleged role in allowing the trading violations. “These directors clearly failed to protect the interest of investors,” said New York Attorney General Eliot Spitzer. “They acknowledged the problem of market timing, but then allowed a favored client to engage in that harmful practice. Allegations included that traders at the Bank of America’s securities subsidiary assisted select clients to illegally trade in mutual funds after-hours at stale prices, or “late trading” at the expense of ordinary investors.
Bank of America Ordered to Pay Customer $80,000
An NASD arbitration panel ordered Banc of America Investment Services to pay an investor $80,000 to compensate him for damages that he suffered as a result of Banc of America’s misconduct. Claimant alleged breach of contract, breach of fiduciary duty, fraud, negligent supervision, negligence, and gross negligence relating to a forged margin agreement and unsuitable trades.
If you suffered investment losses, please contact us or communicate with a Dimond Kaplan & Rothstein, P.A. attorney at 888-578-6255 or jkaplan@dkrpa.com for a free case evaluation.
