Dayton Business Journal...
Ohio AG sues Bank of New York Mellon
by Laura Englehart, Reporter
Tuesday, March 13, 2012 

Ohio Attorney General Mike DeWine has filed a lawsuit against The Bank of New York Mellon    for $16 million on the basis it violated Ohio laws against deceptive trade practices in its handling of two state pension funds. 

The suit alleges BNY Mellon violated the Ohio Deceptive Trade Practices Act through a breach of contract and fraud when it facilitated foreign currency exchanges for the Ohio Police & Fire Pension Fund and School Employees Retirement System, two state pension funds that serve thousands of first-responders, school district employees and their families. 

An investigation into BNY Mellon found when the bank completed foreign currency exchanges -- required to purchase stock in foreign markets -- it “exploited the volatility of the foreign currency market to their advantage at the expense of Ohio pensioners and their families,” DeWine said. 

DeWine’s office said it uncovered discrepancies between prevailing market rates on the days when the trades were completed and the rates the pension funds were charged and credited. The complaint alleges BNY Mellon defrauded the pension funds by systematically overcharging them on currency transactions. 

The pension fund and retirement system have asked for $16 million in damages for alleged losses incurred by the retirement funds as a result. 

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