DC settles lawsuit against Bank of America over fraud

WASHINGTON (AP) – The District of Columbia government has settled a lawsuit filed against Bank of America for its role in a long-running embezzlement scheme involving a city tax office employee.

Attorney General Karl Racine announced the settlement of the 8-year-old case on Tuesday. He says Bank of Americahas agreed to pay $13 million to the District.

The city sued Charlotte, North Carolina-based Bank of America in 2008, arguing that the bank’s lax oversight allowed Harriette Walters to deposit $34 million worth of fraudulent tax refund checks. An assistant branch manager pleaded guilty to his role in the scheme. Walters is serving a 17-year prison sentence.

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