Ex-Bank of America Official Indicted in Muni Bid-Rigging The man, Phillip D. Murphy, former head of Bank of America's municipal derivatives desk, was charged with conspiracy to defraud the United States, wire fraud and conspiracy to make false entries in bank records, according to the indictment filed on Thursday in federal court in Charlotte, N.C. Mr. Murphy "allegedly participated in a complex fraud scheme and conspiracies to manipulate what was supposed to be a competitive process," Scott D. Hammond, a deputy assistant attorney general in the Justice Department's antitrust division, said in an e-mailed statement. The division recently convicted at trial several individuals in this investigation, which is ongoing. So far, 13 individuals from banks including Bank of America, JPMorgan Chase and UBS have pleaded guilty in the Justice Department's investigation. Bank of America, JPMorgan, UBS, Wells Fargo and General Electric have paid more than $700 million in restitution and penalties. Bank of America, which reported the illegal activity, has been cooperating for more than four years with Justice Department prosecutors, who say that bankers paid kickbacks to CDR Financial Products to rig bids on investment contracts sold to local governments. Municipalities bought the contracts with money raised through bond sales, which allowed them to earn a return until the funds were needed for schools, roads and other public works. Susan Necheles, Mr. Murphy's lawyer, did not immediately respond to a telephone message seeking comment on the indictment. Bill Halldin, a spokesman for Bank of America, which is based in Charlotte, declined to comment on the charges.