Bank of America has reached a settlement with the Profit Connect Receivership for $1.825 million.

As per a motion seeking settlement approval filed on June 5th;

The Receiver conducted a preliminary investigation into the involvement and conduct BANA, issuing a third-party subpoena to it for documents relating to the Profit Connect accounts, reviewing Profit Connect’s electronic data relevant to BANA’s involvement, and evaluating the nature of the banking activity that occurred.

As part of the evaluation, the Profit Connect Receiver engaged the law firm Levine Kellogg Lehman Schneider + Grossman LLP (LKLSG) to assist.

Based on LKLSG’s investigation and analysis, the Receiver determined he, on behalf of Profit Connect and the Receivership Estate, had viable claims against BANA for its involvement in the Profit Connect investment scheme.

The Profit Connect Receiver drafted up a Complaint against Bank of America, but asked whether it’d be open to “pre-suit settlement discussions”. It was.

The Parties mediated on January 22, 2025, in Los Angeles, California.

The mediation was successful, resulting in a signed term sheet memorializing the settlement between the Receiver and BANA.

On May 1, 2025, the Receiver and BANA signed the Settlement Agreement.

The court has scheduled a hearing regarding the Bank of America settlement for June 25th.