Bank of America to pay $3.9M to settle $16B fraud case

Bank of American has agreed to pay a $3 million fine and settle an investigation into allegations it paid a trucking company more than $16 million to lure employees to take part in an illegal scheme.

The settlement with the Securities and Exchange Commission says the bank paid $16.4 million in compensation to the trucking firm after it failed to disclose in 2014 that the company was selling off a fleet of cargo trucks that were to be used for hauling food, gas and other goods to the company’s trucking operations in Florida.

The company agreed to forfeit $3,879,566.10 in total to settle the investigation.

The company agreed not to participate in another investigation into the matter until 2018.

The SEC said in a statement that the settlement was part of an ongoing and multiyear effort to hold companies accountable for their financial and business practices.

The agency is also conducting a criminal investigation into a possible civil money laundering scheme by Bank of Americans that it says has resulted in more than 2,000 employees losing their jobs.