DoJ: Mellon Bank To Pay $16.5M For Destroying (2001 Income) Tax Docs

[UpInArms]

Source: CBSMarketwatch

Mellon Financial Corp.'s (MEL: 44.78, +0.98, +2.2% ) Mellon Bank agreed to pay $16.5 million to settle claims related destroying 77,000 individual tax returns and checks that it was supposed to deliver to the Treasury Department. According to the Department of Justice, in 2001 the bank told the Internal Revenue Service it had completed a special program to process tax returns and checks received during the peak April tax period when it had actually destroyed them. This is the third such settlement Mellon has had to make, bringing its total fines to more than $34 million. Mellon had 2006 net income of $932 million.

Read more: http://www.marketwatch.com/news/story/doj-mellon-bank-pay-165m/story.aspx?guid=%7BE419706A%2DDE51%2D4BC7%2D92F5%2D374082D9FCB0%7D&dist=TQP_Mod_mktwN

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See how wonderful outsourcing is!

[napi21]

1. Hmmm, probably wasn't worth processing those returns huh?

I realize there net income was a lot more than that, but I'd be surprised if the profit on processing those returns was EVEN $34mm.

[lynnertic]

2. perhaps $34M was the amount of their contract.

[napi21]

3. I have no idea, but with all their legal expenses fighting this mess, it sure

wasn;t worth dabbeling with tax processing, was it?

[tanyev]

4. Next, the DOJ is going to investigate all the documents Cheney has destroyed.

:spray:

Sorry, thought I could say that with a straight face.