New York Attorney General Andrew Cuomo on February 4 filed charges of fraud against corporate giant Bank of America, as well as Kenneth Lewis and Joseph Price, the bank’s former chief executive and financial officer, respectively.
According to The Washington Post, Cuomo alleges that the two former Bank of America executives lied to investors and government officials planning a colossal bailout for the bank at the end of 2008.
Price and Lewis have been accused of intentionally misleading federal officials about the extent of their losses at Merrill Lynch, an investment bank that Bank of America was in the process of acquiring at the time. In addition, the lawsuit claims the former bank leaders concealed billions of dollars in bonuses paid to employees.
Both Bank of America and the two former executives deny the charges.
According to the report, Cuomo’s lawsuit may call for current and former federal officials to offer courtroom testimony about their role in the country’s financial overhaul.
This is not the first time Bank of America has come under fire for its financial practices. The Securities and Exchange Commission previously brought two lawsuits against the bank, claiming the company had mislead its shareholders. However, according to the Post those lawsuits did not name individual executives.