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As previously posted here on February 9, 2010, the New York Attorney General has filed a Complaint containing Fraud allegations against Bank of America, its former Chief Executive Officer Kenneth Lewis, and its Chief Financial Officer Joseph Price, and the Federal Securities and Exchange Commission has taken the opposite tack. The SEC has attempted to exonerate Mr. Lewis and Mr. Price and the remaining Officers and Directors of BOA upon the same set of operative facts.
Merrill Lynch was going to pay huge bonuses to its employees while it was in talks with BOA to take over Merrill Lynch. More than that: Merrill was facing huge losses that were generally unknown at the same time. BOA's Mr. Lewis and Mr. Price, and perhaps others, allegedly knew. BOA did not tell its shareholders, who would end up paying the price. More than that, even: Allegedly BOA and its Officers did not tell the Federal Government which was preparing to provide BOA with TARP -- Federal Taxpayer -- money.
In contrast to the SEC, the New York Attorney General has taken the view that this is wrong and has made a civil claim for Fraud. Here is the Complaint filed by the New York A.G.'s Office on Thursday, February 4, 2010: Download Complaint.People of New York v. Bank of America, Kenneth Lewis, and Joseph Price (New York Sup. Ct., Filed 02.04.10). Here is the New York Attorney General's Press Release of the same date describing the Fraud allegations.
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