BofI Holding Addresses 'Inaccurate And Substantively Misleading' Tabloid Story

BofI Holding, Inc.BOFIclaims in its own words to be the "oldest and most trusted internet bank." A New York Post report stated that federal agents are conducting a probe into possible money laundering. The report suggested that the U.S. Justice Department is leading the investigation, which even includes allegations of wrongdoings from the company's CEO Gregory Garrabrants.

BofI Responds

BofI Holding responded in a statement early Friday morning and described the report as being "factually inaccurate and substantively misleading."

"The story is nothing more than a rehash of baseless allegations that first surfaced over two years ago, and have been soundly refuted by BofI in court filings and on conference calls," the company stated.

The company's response included a few examples that refute some of the many incorrect and misleading statements. For example, allegations were made that the company "filed incorrect call reports to hide loans made to foreign nationals without requiring them to provide a tax identification number." The company responded that applicable law does not require tax identification numbers of non-resident aliens who are not engaged in a trade or business in the United States.

The company added that it has no knowledge regarding this money laundering investigation.

In another example, the company refuted allegations that Garrabrants deposited third-party checks into his personal account. In reality, Garrabrants "had purchased in a court approved transaction that included the granting to him of a power of attorney to endorse the checks, and that the deposits were handled in compliance with Bank procedure and applicable regulatory requirements."

Bottom line, the company claims that the report is merely a "rehash of baseless allegations that first surfaced over two years ago, and have been soundly refuted by BofI in court filings and on conference calls."

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