New York Paralegal Blog

WASHINGTON—GE Funding Capital Market Services Inc. entered into an agreement with the Department of Justice to resolve the company’s role in anticompetitive activity in the municipal bond investments market and agreed to pay a total of $70 million in restitution, penalties and disgorgement to federal and state agencies, the Department of Justice announced today.

WASHINGTON – JP Morgan Chase & Co. has entered into an agreement with the Department of Justice to resolve the company’s role in anticompetitive activity in the municipal bond investments market and has agreed to pay a total of $228 million in restitution, penalties and disgorgement to federal and state agencies, the Department of Justice announced today.   As part of its agreement with the department, JPMorgan admits, acknowledges and accepts responsibility for illegal, anticompetitive conduct by its former employees.   According to the non-prosecution agreement, from 2001 through 2006, certain former JPMorgan employees at its municipal derivatives desk, entered into unlawful agreements to manipulate the bidding process and rig bids on municipal investment and related contracts. These contracts were used to invest the proceeds of, or manage the risks associated with, bond issuances by municipalities and other public entities.   “By entering into i...

NEW YORK – Attorney General Eric T. Schneiderman today announced a multimillion dollar settlement with UBS for fraudulent and anticompetitive conduct in its municipal bond derivative transactions with governments and nonprofits across the country. UBS will pay $90.8 million as part of a coordinated federal and state enforcement agency settlement. Of that amount, $63.3 million will go to a multistate restitution fund for governments and nonprofits that entered into municipal derivatives contracts with UBS, or used UBS as a broker on such deals, between 2001 and 2004. “Schemes that defraud our governments and nonprofits cheat the people those entities serve,” Attorney General Schneiderman said. “We will not tolerate this type of misconduct at any level, especially as we work to restore public faith in our economic institutions. I will continue to work with our partners in federal and state law enforcement, and use the full force of my office, to hold those at fault responsible and ens...