Lubbock taxpayers to get refund from JPMorgan Chase - KCBD NewsChannel 11 Lubbock

Lubbock taxpayers to get refund from JPMorgan Chase

LUBBOCK, TX (KCBD) -

Back in 2005, the voters, taxpayers and ratepayers of Lubbock were cheated, according to federal out-of-court settlement records. Now, according to this week's City Council agenda, the City of Lubbock is getting a refund of $258,671.20 as part of a nationwide settlement.

More than a year ago, a statement from the U.S. Department of Justice said, "JPMorgan Chase & Co. … agreed to pay a total of $228 million in restitution, penalties and disgorgement to federal and state agencies."

The official settlement document from that same time period said, "From 2001 to 2006, certain then-employees of JPM … entered into unlawful agreements to manipulate the bidding process and rig bids on certain relevant municipal contracts…"

The settlement document said the company violated the Sherman Anti-Trust Act.

In July 2005, the city refinanced remaining debt on a 1995 Lake Alan Henry project and took over the debt from the Brazos River Authority. The city took over debt from the BRA in a move that was called a "bond swap" at the time. JP Morgan provided services for the swap.

If approved by the Council this week, the refund will be applied to the city's water fund.

Copyright 2012 KCBD. All rights reserved.

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