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.

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