The suit was brought by a number of depositors, in the name of private investor Ralph Gonzales. The plaintiffs accused Lloyds TSB and Man Financial of aiding and abetting a foreign currency trading operation, originally known as Midland Euro Exchange, which was run by two US men, Reuters reported.
The publication revealed that the fraudulent firm amassed $130 million from 300 investors over the internet. The two men, both members of the Leichner family, admitted obtaining these funds through deceptive practices in 2003.
The bank admits no liability or wrongdoing on its part. The settlement has been reached in order to put an end to the distraction and expense of litigation, said Lloyd’s TSB in a statement regarding the case, as cited by Reuters.
A third company, Kaplan, Swicker & Simha Accountancy Corporation, has consented to pay $400,000 for its part in the alleged scheme, Bloomberg said. According to Reuters, final court approval of the settlements to be paid by all firms is expected to come in October 2007.
