(Columbus, OH) – Ohio Attorney General Mike DeWine announced today that eligible Ohio agencies, municipalities and others will be able to seek recovery of funds for overpayments for bond products in a joint settlement with several states and UBS. The overall $90.8 million settlement stems from investigations by the U.S. Department of Justice, Securities and Exchange Commission, Internal Revenue Service, and states.
“This is great news for those who paid too much to protect or grow funds needed for their communities,” said Ohio Attorney General Mike DeWine. “This is another example of why we must remain vigilant in protecting taxpayers’ dollars.”
Ohio public entities expected to be eligible for restitution include the City of Cleveland, the Ohio Water Development Authority and the Centerville City School District. For a variety of reasons, Ohio agencies and political subdivisions issued a small portion of the bonds involved in this case.
As a provider of risk management products used to protect or enhance the value of proceeds from the issuance of bonds, agencies and political subdivisions relied on UBS to offer competitively priced products. But the investigations, with the cooperation of UBS, found alleged instances of orchestration of bids, the use of bids to provide “cover” that provided the illusion of competition and direct fixing of prices.
The settlement is similar to the one previously negotiated with Bank of America. It includes three parts: a restitution pool from which identified victims can receive payment; payment to the states’ Working Group for costs and fees incurred in the investigations; and a civil penalty.
-30-
Media Contacts:
Lisa Hackley 614-466-3840
Mark Moretti 614-466-3840