by Brian Mahany
Leave it to William Francis Galvin, Secretary of the Commonwealth of Massachusetts. I met Galvin in 1995, shortly after his election. At the time I was Maine’s revenue commissioner. Galvin has stayed in government service and is certainly not afraid to take on the Wall Street big dogs. In this case, Bank of New York Mellon.
According to a complaint filed last week, the Massachusetts Securities Division charges Mellon with securities fraud. They say that Mellon ripped off investors including some powerful Massachusetts public pension funds.
According to the complaint, Mellon bank “garnered tens of millions in illegal profits from exorbitant undisclosed mark ups on foreign currency exchanges offered by [Mellon]”. Foreign currency exchanges, called FOREX, are a frequent source of fraud. The charges are quite serious and include an allegation that Mellon bank “rigged” the pricing of some foreign currency exchange transactions.
FOREX is a major profit center for the bank. The complaint says BNY Mellon bank made a $1.5 billion profit in 2008, during the height of the market crash.
The bank has not filed an answer to the complaint yet. For its part, a bank spokesperson says the complaint “recycles baseless allegations.” Virginia and Florida have filed similar charges against the bank. New York’s attorney general accused the bank in another FOREX complaint filed earlier this month of defrauding the state by overcharging it $2 billion. California and the Philadelphia Transit Authority have filed large lawsuits as well.
Government prosecutions of large Wall Street banks have been virtually nonexistent. Even as the Occupy Wall Street protestors continue to demonstrate against corporate greed, few banks and bankers have been charged. In Massachusetts, one public official is speaking out.
If you are the victim of bank fraud or investment fraud, contact the fraud lawyers at Mahany & Ertl, LLC. Our asset recovery lawyers have helped many people get back their hard earned money. For more information, contact attorney Brian Mahany at (414) 704-6731 (direct) or by email at Comments and questions are welcome!
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