Mark Iandolo Feb. 26, 2016, 12:42pm

TRENTON, New Jersey (Legal Newsline) — A multimillion dollar settlement with Natixis Funding Corp. and Societe Generale will resolve allegations these organizations acted fraudulently and anti-competitively, New Jersey Attorney General John J. Hoffman has announced.

The fraudulent and anti-competitive actions allegedly came during municipal bond derivative transactions with government agencies and non-profits in New Jersey and across the country. To resolve the allegations, Natixis will pay $29.9 million and Societe Generale will pay $26.7 million.

Hoffman said 53.8 million will go into a global settlement fund. This fund will provide restitution for affected entities that include municipalities, counties, government agencies, school districts and non-profits that entered into municipal derivatives contracts with Natixis or Societe Generale.

Municipal bond derivatives are contracts that tax-exempt issues use to reinvest bond sale proceeds. Claims allege Natixis and Societe Generale rigged bids for these contracts and submitted non-competitive courtesy bids and fraudulent certificates to government agencies.

The case was handled by deputy attorney generals Toral Joshi and Isabella Stempler, and assistant attorney general Brian F. McDonough.

Organizations in this Story

State of New Jersey Department of Law Office of the Attorney General
25 Market St
Trenton, NJ 08611

Get notified the next time we write about State of New Jersey Department of Law Office of the Attorney General!

More News