Former Bank of America Chief Financial Officer Joe Price has agreed to a $7.5 million fine to settle charges he deceived shareholders to push through the company's acquisition of Merrill Lynch.
Price was also banned from serving as an officer or director of a public company for 18 months under a settlement with New York State Attorney General Eric Schneiderman. A lawyer representing Price did not immediately respond to a request for comment.
Bank of America (BAC) will pay the $7.5 million fee on behalf of Price, according to the Attorney General's office.
The deal concludes the case filed against Price, Bank of America and former Chief Executive Kenneth Lewis in 2010 by the Attorney General's office. The case alleged that the company and the former executives withheld information about Merrill Lynch's multibillion-dollar forecasted losses from shareholders in order to obtain their approval for the $50 billion acquisition in December 2008. The deal cost Bank of America billions of dollars in losses and helped bring about a $20 billion government bailout.
B of A and Lewis reached settlements over their roles in the troubled Merrill acquisition in late March. Bank of America agreed to pay $15 million and to cover Lewis's $10 million fine. The Charlotte, N.C., company also agreed to implement several corporate governance reforms. Lewis agreed to refrain from serving as an officer or director of a public company for the next three years.