http://www.huffingtonpost.com/2012/07/23....

Hard times at BofA right now. But then, it's kind of always hard times for BofA, isn't it? The latest dust-up for Brian Moynihan's problem child involves Phillip Murphy, a former executive at Bank of America who has just been indicted for fraud.

Murphy used to be the head of BofA's municipal derivatives desk, and, from 1998 to 2006, was allegedly involved in a scheme to rig bids for investment contracts with city governments.

The way that process is supposed to work is that cities sell off municipal bonds, then invest the money with a bank to try and make it grow, as the Charlotte Business Journal explains. Banks then compete amongst themselves to get those bond funds. What Murphy allegedly did wrong, according to the indictment filed last week, was to conspire with brokers at other banks so that they'd lose the bidding on purpose.

More at link.

LOL............no kidding........Murphy’s compensation was based on the amount of revenues generated by his group at the firm.

According to the indictment, the bidding was rigged for bond-related investment agreements for the Alameda Corridor Transportation Authority, the J. David Gladstone Institutes, and Santa Clara University, all of which are located in California.

Maximum penalties for Murphy’s charges are: five years in prison and a $250,000 fine for fraud conspiracy, 30 years in prison and a $1 million fine for wire fraud, and five years in prison and a $250,000 fine for false bank records conspiracy.

http://www.bondbuyer.com/issues/121_140/....

I wonder how those rigged deals turned out for the state of California.
Just a guess not as well as expected.