Defendant Name:
Wachovia Bank, N.A.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Wells Fargo & Co.
SIC Code:
6021
CUSIP:
94974610
Initial Case Details
Legal Case Name
SEC v. Wachovia Bank, N.A. now known as Wells Fargo Bank, N.A., successor by merger
First Document Date
08-Dec-2011
Initial Filing Format
Civil Proceeding
Case Number
11-cv-07135
Allegation Type
Municipal Securities & Public Pensions
Federal District Court
New Jersey, District of New Jersey
Violations Alleged
•
Sec 17(a) (Not specified)
Resolutions
First Resolution Date
08-Dec-2011
Headline Total Penalty and Disgorgement
$46,078,591
Related Documents:
2011-257
08-Dec-2011
Press Release--Civil Action
SEC Charges Wachovia with Fraudulent Bidding Rigging in Municipal Bond Proceeds
On December 8, 2011, the SEC announced that it "charged Wachovia Bank, N.A. with fraudulently engaging in secret arrangements with bidding agents to improperly win business from municipalities and guarantee itself profits in the reinvestment of municipal bond proceeds. The SEC alleges that Wachovia generated millions of dollars in illicit gains during an eight-year period when it fraudulently rigged at least 58 municipal bond reinvestment transactions in 25 states and Puerto Rico."
Complaint for Violations of the Federal Securities Laws
In the Complaint, the SEC stated: "This case involves various fraudulent bidding practices by Wachovia involving the temporary investment of proceeds from the sale of tax-exempt municipal securities in certain reinvestment instruments by state and local government entities in the United States ('Municipalities').... Wachovia's fraudulent practices and misrepresentations affected the prices of the reinvestment instruments, deprived the municipalities of a conclusive presumption that their reinvestment instruments were purchased at fair market value, and/or jeopardized the tax-exempt status of the underlying securities, thereby injuring numerous Municipalities. During an eight-year period, Wachovia rigged at least 58 transactions concerning the reinvestment of proceeds from the sale of over $9 billion of underlying municipal securities, generating millions of dollars in ill-gotten gains."
SEC Charges Wachovia with Fraudulent Bidding Rigging in Municipal Bond Proceeds
On December 8, 2011, the SEC announced that it "charged Wachovia Bank, N.A. with fraudulently engaging in secret arrangements with bidding agents to improperly win business from municipalities and guarantee itself profits in the reinvestment of municipal bond proceeds. The SEC alleges that Wachovia generated millions of dollars in illicit gains during an eight-year period when it fraudulently rigged at least 58 municipal bond reinvestment transactions in 25 states and Puerto Rico."
Final Judgment as to Defendant Wachovia Bank, N.A.
On December 8, 2011, Federal District Judge William J. Martini entered Final Judgment against Wachovia Bank, N.A. pursuant to the SEC and Wachovia Bank, N.A.'s consent.
