The Register-Herald, Beckley, West Virginia

State News

February 23, 2013

W.Va. gets share in municipal bond bid-rigging scheme

CHARLESTON — The state has received its portion of a national settlement with Wells Fargo over a municipal bond bid-rigging scheme.

The state Economic Development Authority received a $358,000 check. It is part of a $148 million settlement Wells Fargo reached with the IRS, several states and federal agencies.

Authority executive director David Warner says the settlement covers a 2002 bond issuance to raise revenue for a project at Stonewall Jackson Lake State Park.

The Charleston Daily Mail reports nearly all of the money will go to United Bank, the trustee in the Stonewall bond sale.

The Securities and Exchange Commission says Wachovia Bank generated millions of dollars in illicit gains over eight years when it fraudulently rigged at least 58 municipal bond transactions. Wells Fargo acquired Wachovia in 2008.

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