BofA Securities to pay nearly $6 million in market manipulation settlement
AI-generated summary reviewed by our newsroom.
- BofA Securities will pay $5.56 million to settle market manipulation claims.
- Two ex-traders placed over 1,000 fake orders in U.S. Treasury markets from 2014–2020.
- DOJ declined prosecution as BofA self-reported, cooperated, and enhanced oversight.
Bank of America Securities won’t be prosecuted for alleged market manipulation, according to the U.S. Department of Justice, but the company’s investment banking division will pay $5.56 million to settle the case.
The Charlotte-based financial institution agreed to pay back about $1.96 million and contribute $3.6 million to a fund for victims, DOJ said Thursday.
The criminal investigation stemmed from two former BofAS traders who manipulated the market between 2014 and 2020 by placing more than 1,000 fake orders, DOJ said. Only one worker has been identified by DOJ.
Tyler Forbes, of Manlius, N.Y., pleaded guilty in April 2022 to manipulating U.S. Treasury securities prices. He had faced a maximum penalty of 20 years. In July 2022, he was sentenced in Eastern District of New York to two years of supervised release. The first year included home detention and complete 1,000 hours of community service, according to federal court documents.
The Justice Department said it decided not to prosecute BofA Securities because the company reported the misconduct itself, cooperated with the investigation and improved internal controls.
Bank of America officials declined to comment.
