(Bloomberg) — Bank of New York Mellon Corp., the world's largest custody bank, will pay $714 million to settle allegations by the U.S. and New York state that it defrauded clients in foreign-exchange transactions for as long as a decade.
New York began its case after a whistle-blower lawsuit was filed in 2009 under the state's False Claims Act. The scheme allegedly defrauded thousands of clients nationwide, including public and private pension funds and federally insured financial institutions.
As part of the deal, the bank agreed to repay $84 million to employee benefit plan customers who were victimized through the bank's "standing instruction" foreign-exchange trading program.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
