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Investigation involving Bank of America’s Structured Equity Finance and Trading Operation (SEFT)

According to the Wall Street Journal, regulators have intensified their scrutiny of certain dividend-tax trades and deepened an investigation into whether Bank of America broke rules designed to safeguard client accounts.

The report goes on to say that a group at Bank of America Corp. that specialized in arranging trades to help clients around the world avoid taxes has been dismantled (the Journal previously reported that Monuhar Ullah had left BofA amid further restructuring after the controversial Structured Equity Finance and Trading operation (otherwise known as SEFT) had been dismantled.

Although Bank of America dismantled the group that helped clients avoid paying taxes, regulators reportedly press on with probes and an outright ban on SEFT.  The Journal goes on to allege that some employees claim they aren’t even allowed to say the group’s name anymore and that Bank of America is grappling with internal dissent and client disputes related to the group.

The White Law Group is investigating the liability that Bank of America may have for damages incurred by clients who were involved with the SEFT operation.  If it can be demonstrated that Bank of America improperly recommended that clients participate in SEFT, the bank may be help responsible for any damages that have occurred as a result of this recommendation – including, potentially, any tax penalties paid as a result of their participation.

The firm has seen similar problems with other banks, including Deutche Banks’ CARDS program, and has previously investigated claims involving those programs and the potential to recover tax penalties paid by Deutche Bank clients.

If you suffered damages as a result of your participation in Bank of America’s Structured Equity Finance and Trading operation (SEFT) and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.  The firm represents clients throughout the country in claims against brokerage firms.

For more information on the firm, visit https://whitesecuritieslaw.com.

Tags: , , , , , , , , , , , , , , , Last modified: January 8, 2016