Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Bank of America Corp    BAC

Delayed Quote. Delayed  - 10/24 10:00:40 pm
16.77 USD   +0.60%
10/24 DAVID HENRY : 'Smarter than a robot,' Bank of America's Erica will c..
10/24 Regulators taking another look at costs of Wall Street safety rul..
10/24 BANK OF AMERICA : Guide with millenials in mind
News SummaryMost relevantAll newsSector news 

Bank of America Corp : Bank of NY Mellon to pay $114 million in Medical Capital accord

share with twitter share with LinkedIn share with facebook
share via e-mail
02/22/2013 | 11:11pm CEST

Bank of New York Mellon Co has agreed to pay $114 million to settle claims over its role as trustee for debt issued by Medical Capital Holdings Inc, a medical receivables financing company that collapsed in 2009 amid fraud allegations.

Investors accused Bank of New York Mellon, the world's largest custodial bank, of failing to properly review Medical Capital's dealings before letting the company use investors' money, breaching its fiduciary and contractual obligations to those investors.

Medical Capital and two top executives had been sued by the U.S. Securities and Exchange Commission for fraud in July 2009, and a receiver was appointed the next month.

According to court papers, the Tustin, California-based company raised about $1.7 billion from more than 20,000 investors from 2003 until the SEC shut it down.

In December 2011, a forensic accounting report from the receiver, Thomas Seaman, estimated Medical Capital investor losses at between $839 million and $1.08 billion, and said the company used a "Ponzi-like scheme" to extract excessive fees.

According to papers filed on Thursday with the U.S. District Court in Santa Ana, California, Bank of New York Mellon agreed to settle all claims brought by investors in class-action litigation, two related litigations and the receiver.

Investors in the class action would share a $90.68 million cash payment, and their lawyers plan to seek as much as $13.6 million in fees plus $1.8 million for expenses, the papers show.

Related class-action litigation against Wells Fargo & Co, also a trustee for some Medical Capital debt, would continue, the papers show.

The settlement requires court approval.

Bank of New York Mellon denied wrongdoing, but settled to avoid the risks and costs of litigation, court papers show.

"We are pleased to be putting this matter behind us," bank spokesman Kevin Heine said.

David Azar, a lawyer for some of the investors, declined to comment.

A Wells Fargo spokesman did not immediately respond to a request for comment.

One of the Medical Capital executives sued by the SEC, former president Joseph Lampariello, pleaded guilty last May to a related criminal wire fraud charge, court records show. He has yet to be sentenced, those records show.

The case is In re: Medical Capital Securities Litigation, U.S. District Court, Central District of California, No. 10-ml-02145.

(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)

By Jonathan Stempel

share with twitter share with LinkedIn share with facebook
share via e-mail
10/24 DAVID HENRY : 'Smarter than a robot,' Bank of America's Erica will coach custome..
10/24 Regulators taking another look at costs of Wall Street safety rule
10/24 BANK OF AMERICA : Guide with millenials in mind
10/24 BANK OF AMERICA : Merrill Lynch Extends CashPro® Flow to Bank of America Merchan..
10/24 BANK OF AMERICA : Tulsa police seek public's help locating man missing since Sep..
10/24 BANK OF AMERICA : Merrill Lynch Speeds U.S. Wholesale Lockbox Processing
10/24 BANK OF AMERICA : America's biggest banks have announced their Venmo competitor,..
10/24 BANK OF AMERICA : Hong Kong judge warns of "torture" images as British banker's ..
10/22 BANK OF AMERICA : Advocacy group concerned about Bank of America branch closing
10/22 BANK OF AMERICA : FBI Seeks Serial Bank Robbed Dubbed Scruffy Faced Bandit
More news
Sector news : Banks - NEC
07:58aDJSWEDBANK : Posts Forecast-Beating Third Quarter Net Profit
04:08aDJBANK OF CHINA : London Branch Plans USD-Denominated Green Covered Bond Offering ..
10/24DJBANK OF NEW YORK MELLON : Fed's Powell Says Central Bank Will Raise Expectations..
10/24 Regulators taking another look at costs of Wall Street safety rule
10/24 TD Ameritrade faces scrutiny over Scottrade purchase
More sector news : Banks - NEC
News from SeekingAlpha
10/24 Bank Of America Going To $20 By Year-End
10/24 JOHNSON & JOHNSON : Dark Pool Indicator Flashes Warning
10/21 BANK OF AMERICA Q3 BLOWOUT : Key Takeaways
10/21 What To Buy After U.S Elections And December Interest Rate Hike; Longs & Shor..
10/21 Turn A Rate Hike Into A Gain With This Stock
Financials ($)
Sales 2016 85 013 M
EBIT 2016 24 910 M
Net income 2016 15 777 M
Debt 2016 -
Yield 2016 1,49%
P/E ratio 2016 11,80
P/E ratio 2017 10,73
Capi. / Sales 2016 2,01x
Capi. / Sales 2017 1,99x
Capitalization 171 134 M
More Financials
Duration : Period :
Bank of America Corp Technical Analysis Chart | BAC | US0605051046 | 4-Traders
Full-screen chart
Technical analysis trends BANK OF AMERICA CORP
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus OUTPERFORM
Number of Analysts 33
Average target price 17,9 $
Spread / Average Target 6,7%
Consensus details
EPS Revisions
More Estimates Revisions
Brian T. Moynihan Chairman, President & Chief Executive Officer
Thomas Kell Montag Chief Operating Officer
Paul M. Donofrio Chief Financial Officer
Thomas J. May Independent Director
Frank P. Bramble Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
JPMORGAN CHASE & CO.4.30%248 757
WELLS FARGO & CO-16.26%229 673
More Results