On October 18, the DOJ reached a settlement agreement with a bank to resolve allegations related to the administration of certain trust accounts referred by a third-party bank. The settlement, involving a payment of $9,125,000 plus interest, addressed claims that the bank approved disbursements from trust accounts not in the beneficiaries’ best interests. The DOJ held this violated the terms of the trusts established for personal injury settlements involving lead poisoning victims.
The settlement agreement stipulated the bank will not charge any costs related to the settlement to government contracts and releases the bank from certain civil monetary claims under the FDI Act. However, it reserved the U.S. government’s right to pursue other claims, including criminal liability and administrative enforcement actions. The settlement agreement noted the bank denied these allegations.
