Mellon to pay $16.5M in DOJ settlement |
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Thu, 28 Jun 2007 22:28
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PITTSBURGH (AP) - Mellon Financial Corp. said Thursday its subsidiary Mellon Bank NA will pay a settlement fee of $16.5 million to the U.S. government for destroying tens of thousands of tax returns and checks in 2001.The suit was filed after it was discovered that Mellon employees had destroyed 77,000 tax returns and checks received from taxpayers, the Justice Department said.Mellon was under contract by the Treasury Department to process individual tax returns and checks on behalf of the IRS by midnight on April 29, 2001. That day, a Mellon vice president falsely notified the IRS that Mellon had completed its work.As part of the settlement, seven former Mellon employees previously charged with the destruction of the tax returns entered guilty pleas in their cases.This is the third settlement agreement between Mellon and the government over the destruction of tax returns. In 2002, Mellon paid $18 million to the Treasury Department as part of a separate settlement deal to reimburse the government on costs in connection with the IRS tax returns.Shares of Mellon rose 3 cents to $44.47 in after-hours trading, after closing at $44.44.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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