Eight banks sue to block Connecticut Attorney General subpoenas for banking records

HARTFORD — Eight regional and national financial institutions are asking a judge to halt a state investigation into their companies. 

On Oct. 1, the AG’s office issued a series of subpoenas seeking “extensive banking records and financial data” from Jan. 1, 2018, to the present, according to the lawsuit.

The subpoenas requested financial records, bank statements, cancelled checks, signature cards, evidence of transfers, loan and credit applications, deposit slips, and safe-deposit box records, “without limitation to any identified transaction or alleged misconduct,” the lawsuit went on to state. 

The banks argue the subpoenas were not accompanied by “any notice of pending administrative or judicial action,” except that they were related to the submission of claims for payment to a medical assistance program,” according to the lawsuit. 

“Because no administrative referral or case exists, these subpoenas are procedurally defective and should be quashed in their entirety,” the lawsuit stated. 

Elizabeth Benton, spokeswoman for Attorney General William Tong, said state law authorizes the Attorney General to investigate suspected violations of the state False Claims Act and to issue subpoenas for records in furtherance of the investigation.

“When the subpoena seeks records from a bank, the attorney general must also serve a copy of the subpoena on the account holder,” Benton said. 

Benton declined to comment any further. 

The banks contend the AG’s office lacks jurisdiction, the subpoenas are overly broad and violate financial privacy.