Details Emerge in Florida Probe of Excess Charges to Pension Fund

Submitted by Anonymous on February 8, 2011 - 3:15pm

Court documents filed by the state of Florida reveal that the Bank of New York Mellon Corp. is accused of overcharging the state pension fund.

Florida and three other states are investigating whether banks overcharged public pension funds for foreign-exchange transactions.

FX Analytics is listed with the state of Florida as plaintiff in the case filed in the circuit court of the Second Judicial Circuit in Leon County.

"The action is a 'quit tam' suit, otherwise known as a whistleblower lawsuit, where the private individual brings a fraud action on behalf of the state. This is a common action handled by the attorney general's office under the False Claims Act," said Jennifer Davis, spokeswoman for Attorney General Pam Bondi.

Davis declined to say how much money was in question, but the Wall Street Journal, quoting sources close to the four-state investigation, reported that charges totaled in the "tens of millions of dollars."

The other states are California, Virginia and Tennessee.

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