United States: Bank of America exec arrested for bribery. Feds say banker ran kickback scheme.

A former New York-based Bank of America executive received tens of thousands of dollars at a time in cash bribes, federal prosecutors say, in exchange for fraudulently helping a New Jersey firm get a line of credit at the bank.

Kurt Phelps, the executive, was arrested Oct. 29 and charged with bank bribery and conspiracy to commit bank fraud. Phelps’ arrest is a rare instance of an executive at a major U.S. bank arrested for their conduct as a banker.

Federal prosecutors accused Phelps of a bribery scheme in which he coached Starnet Business Solutions, a Mahwah, N.J. print shop, to falsify financial records to get a line of credit from Bank of America in exchange for cash. Phelps pocketed hundreds of thousands of dollars in bribes over a number of years, prosecutors said.

The original full article can be found at charlotteobserver.com

(Photo:  THE NEW YORK TIMES)

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