US gov't accuses BofA of civil fraud in bond sale
WASHINGTON - The U.S. government has accused Bank of America Corp. of civil fraud, saying the company failed to disclose risks and mislead investors in its sale of $850 million of mortgage bonds during 2008.
The Justice Department filed a civil suit against the bank and two of its subsidiaries on Tuesday. The Securities and Exchange Commission filed a related suit against Bank of America.
The authorities say Bank of America lied to investors about the risk of the mortgages underlying the investment.
Bank of America disputed the allegations.