Colorado is part of a $34.5 million multi-state settlement with GE Funding Capital Market Services, according to the state’s attorney general’s office.
The settlement involved allegations that the company engaged in anticompetitive conduct in the municipal bond derivatives industry, said Attorney General John Suthers. The settlement is a component of a $70 million coordinated state and federal law enforcement and regulatory action involving the U.S. Department of Justice, the Securities Commission and the Internal Revenue Service.
GE Funding has agreed to pay $30 million that will be used to reimburse government and nonprofit organizations that were injured as a result of the conduct. It will also pay $1.25 million civil penalty and $3 million to reimburse states for fees incurred during the investigation.
The ongoing multistate investigation has revealed allegedly collusive and deceptive conduct by individuals at several financial institutions. The conduct included bid rigging, agreements to refrain from bidding and fraud. Ultimately the conduct resulted in lower yields, lower rates of return, or less favorable terms for government and not-for-profit organizations.
The number of Colorado government and nonprofit entities affected by this settlement and the amount they will receive will be determined in the coming months.