Former Bank of America executive Phillip D. Murphy pleaded guilty to conspiring to defraud bond investors and the U.S. government through a bid-rigging scheme, prosecutors said.
Bloomberg News reports that Murphy, former head of the bank’s municipal derivatives desk, admitted in federal court in Charlotte, North Carolina, to manipulating the bidding process for investment agreements covering municipal-bond proceeds, Steven Tugander, a U.S. Justice Department lawyer, said Tuesday in an interview.
Murphy’s guilty plea resulted from the government’s multiyear probe of bid-rigging of investment contracts involving monies generated by municipal bonds. Bank of America, JPMorgan Chase, UBS, Wells Fargo & Co. and General Electric have acknowledged that former employees engaged in illegal activity in connection with the scheme, and the companies paid a total of $743m in restitution and penalties.
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