Bank of America Settles Profit Connect Fraud Case for $1.825 Million
On June 5, 2025, Bank of America (BANA) agreed to a $1.825 million settlement with the Profit Connect Receivership to resolve claims tied to its role in the Profit Connect investment scheme. The settlement follows a thorough investigation by the Receiver, who issued a third-party subpoena to BANA and reviewed electronic data related to the bank’s activities.
Investigation and Mediation
The Receiver enlisted Levine Kellogg Lehman Schneider + Grossman LLP (LKLSG) to assist in the investigation. LKLSG’s analysis confirmed viable claims against BANA, prompting the Receiver to draft a complaint. Instead of proceeding to court, BANA opted for pre-suit settlement talks. On January 22, 2025, mediation in Los Angeles led to a signed term sheet, with the final Settlement Agreement formalized on May 1, 2025.
Next Steps
A court hearing to review the settlement is set for June 25, 2025. This agreement marks a step toward resolving Profit Connect’s fraudulent activities, with BANA’s cooperation avoiding prolonged litigation.
Stay informed: Check with official court updates or regulatory bodies for the latest on this case and similar investment schemes.
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