Calif. Sues Bank For $200M Pension Fund Fraud

Law360, New York (October 20, 2009, 6:32 PM EDT) -- The state of California slapped State Street Bank & Trust Co. with a $200 million qui tam lawsuit Tuesday over allegations the bank committed “unconscionable fraud” against two of the state's largest pension funds by overcharging for the costs of executing foreign currency trades since 2001.

The state alleges that State Street, the custodial bank for the CalPERS and CalSTRS pension funds, violated California's False Claims Act, according to California Attorney General Jerry Brown, who announced the suit Tuesday.

“We categorically deny any allegations of wrongdoing...
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