BofA Securities, a financial institution based in North Carolina, has agreed to resolve a criminal investigation involving alleged market manipulation schemes by former employees.
The scheme, which allegedly took place from November 2014 through April 2020, involved two traders on the bank’s U.S. Treasuries desk separately engaging in schemes to manipulate the secondary (or ‘cash’) market, and one of those employees also engaging in a scheme to manipulate the futures market for U.S. Treasuries by entering spoof orders.
Collectively, the two former employees entered more than one thousand suspected spoof orders during the relevant time period. One of the traders, Tyler Forbes, pleaded guilty in April 2022 to manipulating U.S. Treasury securities prices.
The Justice Department’s investigation found evidence of the misconduct, and the bank has agreed to disgorge approximately $1.96 million and contribute approximately $3.6 million to a victim compensation fund it will establish and administer.
As part of the resolution, the Justice Department has declined to prosecute BofA Securities, and the bank has taken remedial actions, including terminating the junior trader and improving its compliance program.
Acting Assistant Attorney General Matthew R. Galeotti, Assistant Director in Charge Christopher G. Raia, and Inspector in Charge Eric Shen made the announcement, with the FBI and USPIS investigating the case.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Defendant: BofA Securities Inc.
Criminal Charges: Market Manipulation
City and State: Charlotte, North Carolina
Exact Date: April 2022 and May 2025
Sentence or Outcome: Disgorgement of $1.96 million and $3.6 million to victim compensation fund, and declined prosecution
Dollar Amounts: $1.96 million, $3.6 million
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Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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