WASHINGTON (AP) – The District of Columbia government has settled a lawsuit filed against Bank of America for its role in a long-running embezzlement scheme involving a city tax office employee.
Attorney General Karl Racine announced the settlement of the 8-year-old case on Tuesday. He says Bank of America has agreed to pay $13 million to the District.
The city sued Charlotte, North Carolina-based Bank of America in 2008, arguing that the bank’s lax oversight allowed Harriette Walters to deposit $34 million worth of fraudulent tax refund checks. An assistant branch manager pleaded guilty to his role in the scheme. Walters is serving a 17-year prison sentence.
Racine says the settlement “closes a chapter in the District’s history.” An attorney for Bank of Americaand a company spokesman declined to comment.
Piggybankblog Courtroom Bailiff: “All rise! .The Honorable Judge John Wright has left the Courtroom of Public Opinion!”