A former Bank of America executive has been sentenced to 26 months in prison, having admitted playing a key role in multiple frauds over eight years in the $3.5tn US municipal bond market.
Last February Phillip Murphy, a former managing director of BofA’s municipal derivatives product desk from 1998 to 2002, pleaded guilty to being part of bid-rigging schemes related to contracts for the reinvestment of cash raised by selling municipal bonds. The schemes began as early as 1998 and continued until 2006, the Department of Justice found.