Los Angeles Real Estate Blog: B of A former CEO sued for fraud

Phyllis' LA Real Estate Blog

B of A former CEO sued for fraud

I am an optimist and prefer to (start out) believing the best of people and situations. I didn’t agree with Cuomo’s Home Valuation Code of Conduct, but maybe he is trying:

Former Bank of America Corp. Chief Executive Officer Kenneth Lewis was sued by New York Attorney General Andrew Cuomo for defrauding investors and the government when buying Merrill Lynch & Co. The bank agreed to pay $150 million to settle a related lawsuit by U.S. regulators…..

“We believe the bank management understated the Merrill Lynch losses to shareholders, then they overstated their ability to terminate their agreement to secure $20 billion of TARP money, and that is just a fraud,” Cuomo said today at a telephone press conference. “Bank of America and its officials defrauded the government and the taxpayers at a very difficult time.”

Cuomo is pursuing individuals at the bank while the U.S. Securities and Exchange Commission has declined to do so. The suit is being filed under the Martin Act, a New York securities law that permits both civil and criminal penalties.

Related Posts: The Finger Pointing Continues More on the Appraisal Home Valuation Code of Conduct More on the Appraisal Code

Posted by Phyllis Harb at 2/16/2010 1:27 AM

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