Two York County government entities received a combined $33,453 as part of a settlement agreement, and a third could receive more than $125,0000.
Eastern York School District received $2,334 and the city of York received $31,118 as part of restitution from Bank of America, according to the state Attorney General's Office.
The payments are part of more than $11.5 million in restitution to Pennsylvania municipalities and nonprofit organizations that were victims of large-scale bid-rigging case involving major financial institutions.
The scheme involved the marketing and sale of municipal derivative investments, which are often used by government agencies and nonprofit groups to reinvest the proceeds of tax-exempt bonds until those funds are needed.
"According to the continuing national investigation, a number of banks, brokers and financial service firms manipulated the bidding process and shared information - causing victims to pay higher fees and receive lower interest rates," said Linda Kelly, Pennsylvania Attorney General.
Authority: Teresa Weaver, business manager of Eastern York, said the restitution comes in handy.
"The district is always pleased when it receives unanticipated funds," she said.
York City Business Administrator Michael O'Rourke could not be reached for comment.
The York City General Authority could also receive $127, 593 in restitution from a JP Morgan Chase settlement.
However, that money could instead go to the Harrisburg School District, said Stacey MacNeal, solicitor for the general authority.
The authority served as a conduit financing agency for the district, and MacNeal said she'd have to review documents to see whether the district or the authority is entitled to the money.
"This may not be money we're entitled to," she said.
Other payments: Multi-state settlements have been reached over the past year with five major financial institutions. They are:
Bank of America for $67 million
JP Morgan Chase for $92 million
Wachovia for $58.75 million Union Bank of Switzerland for $90.8 million
GE Funding Capitol Market Services for $34.25 million
The settlements are part of a coordinated national investigation involving state attorneys general and numerous federal agencies, including the Securities and Exchange Commission, the Internal Revenue Service, and the U.S. Department of Justice.
Before restitution can be made to each of affected government agencies, each must review settlement agreements and verify the amount they are slated to receive, said Nils Frederiksen, spokesman for the Attorney General's Office.
- Reach Greg Gross at firstname.lastname@example.org.