WASHINGTON, DC – BofA Securities, Inc. (BoAS), a financial institution based in North Carolina, will not face criminal charges in connection with a market manipulation investigation, the U.S. Department of Justice announced. The department resolved its inquiry under Part I of the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP).
As part of the resolution, BoAS has agreed to disgorge approximately $1.96 million and contribute $3.6 million to a victim compensation fund, which it will establish and administer.
According to federal investigators, between November 2014 and April 2020, two former BoAS traders on the U.S. Treasuries desk separately engaged in market manipulation schemes. One of the individuals also placed spoof orders in the U.S. Treasuries futures market—orders that were never intended to be executed. The Justice Department determined that the two traders collectively placed over 1,000 spoof orders during this period. One trader, Tyler Forbes, pleaded guilty in April 2022 to manipulating prices in the U.S. Treasury securities market.
The department’s decision to decline prosecution came after evaluating factors under the revised May 2025 CEP, which emphasizes transparency and voluntary self-disclosure. Officials cited:
- BoAS’s timely and voluntary self-disclosure of the misconduct
- Full cooperation, including disclosure of all known facts
- The seriousness of the offense
- Prompt remediation steps, such as firing the trader, conducting internal reviews, enhancing compliance and surveillance programs, and implementing external control testing
- The absence of aggravating factors
- The bank’s financial contributions toward disgorgement and victim compensation
The announcement was made by Acting Assistant Attorney General Matthew R. Galeotti of the DOJ’s Criminal Division, Assistant Director in Charge Christopher G. Raia of the FBI New York Field Office, and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service, Criminal Investigations Group.
The FBI and U.S. Postal Inspection Service are continuing the investigation. The case is being prosecuted by Trial Attorneys Sara Hallmark and John J. Liolos of the Criminal Division’s Fraud Section.
