The District of Columbia has filed a $105 million lawsuit against the Bank of America for its role in a a tax scam perpetrated by one of the District’s employees. The suit was brought under the District’s False Claims Act.
The Washington Post reports that an employee of the District’s Office of Tax and Revenue processed $48 million in bogus tax refunds and sent them to family and friends. The District contends that the bank is responsible for the loss because of its wrongful hiring, inadequate training and inadequate supervision. One of the conspirators was a bank employee who facilitated cashing of the fraudulent checks. The suit was brought under