Deutsche To Pay $147M To Settle Fraud Charges

Law360, New York (January 19, 2006, 12:00 AM EST) -- Deutsche Bank AG agreed Thursday to pay $147.5 million to settle charges it participated in complex securities fraud that bankrupted a brokerage firm in September 2001.

The trustee of bankrupt Minnesota-based MJK Clearing Inc. sued Deutsche in the U.S. District Court for the District of Minnesota, accusing the German bank of covering its fraud by arranging for MJK to take massive losses.

The settlement concludes four years of investigation and litigation against Deutsche for its alleged role in the transactions. The Deutsche funds will go to...
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