GE Funding Capital Services agrees to $70 million fine
18.05.12
WASHINGTON (Legal Newsline) - GE Funding Capital Market Services Inc. has agreed to pay $70 million in restitution, penalties and disgorgement to federal and state agencies over its role in anticompetitive activity in the municipal bond investments market.
According to a Friday announcement from the Department of Justice, GE Funding admits to anti-competitive conduct by its former traders from 1999 through 2004.
The non-prosecution agreement states that certain former GE Funding traders entered into unlawful agreements to manipulate the bidding process on municipal investment and related contracts.
These contracts were used to invest the proceeds of, or manage the risks associated with, bond issuances by municipalities and other public entities.
"GE Funding's former traders entered into illegal agreements to manipulate the bidding process on municipal investment contracts," said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Justice
Source: Legal News Line