New York Attorney General Recovers $2.3 Billion

Attorney General Eliot Spitzer, a 2006 Democratic candidate for governor in New York, said his office reaped a record level of financial recoveries in 2004.

Total payments to the state, its local governments and members of the public increased 37% to more than $2.3 billion, Sptizer's office indicated.

About $1.3 billion of that money is restitution payments that will be paid directly to individuals. Wall Street cases account for $1 billion of that money and the funds have been deposited, Spitzer's office said, in a federal "Fair Fund." The fund was created by Congress to provide restitution to injured investors.

The largest settlement was with Bank of America, which paid $675 million, including $320 million in restitution, for malfeasance that occurred at its Nations funds and Columbia funds. Bank of America took over the Columbia funds with its purchase of FleetBoston last April.

For reprint and licensing requests for this article, click here.
Money Management Executive
MORE FROM FINANCIAL PLANNING