- Associated Press - Tuesday, October 25, 2016

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 America and a company spokesman declined to comment.

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.

 

Click to Read More

Click to Hide