(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.
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