Mellon Bank

Pittsburgh, PA: (May-21-07) An investigation carried out by the US Attorney General Mary Beth Buchanan's office into the tax returns of Mellon Bank resulted in a settlement of more than $18 million to be paid to the federal government. The investigation stemmed from the destruction of thousands of federal tax returns. Mellon Bank agreed to cooperate with an ongoing investigation into the destruction of 77,000 federal income tax returns and $1.3 billion in tax-payment checks at a Mellon service center in Pittsburgh in April 2001. Mellon had contracted with the IRS to process tax returns, vouchers and checks. But federal investigators found that bank employees were told to destroy the documents after they could not meet a deadline. Seven bank employees were indicted by a federal grand jury in March 2005. One manager has pleaded guilty and others employees are still awaiting trial. Mellon lost its IRS contract in Pittsburgh and has had to pay more than $18 million to cover the interest the government would have received from the delayed payments, as well as the costs of moving the IRS processing center to another company's facility in suburban Philadelphia. [YORK DISPATCH: MELLON BANK SETTLEMENT]

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Published on May-22-07