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Former UBS bankers get prison terms for muni bid-rigging
Source: Reuters
Former UBS bankers get prison terms for muni bid-rigging
By Bernard Vaughan
NEW YORK | Wed Jul 24, 2013 5:37pm EDT
(Reuters) - Three former UBS AG bankers were sentenced to prison on Wednesday for deceiving U.S. municipalities by rigging bids to invest municipal bond proceeds, with the longest sentence at 27 months, a fraction of what prosecutors had sought.
Gary Heinz, 40, a former bank vice president who was caught on recordings discussing the scheme, received the prison sentence of 27 months. U.S. District Judge Kimba Wood also ordered Heinz to pay a $400,000 fine.
Peter Ghavami, 45, who left UBS in 2007 as global head of commodities, was sentenced to 18 months in prison and ordered to pay a $1 million fine; and Michael Welty, 49, a former vice president, was sentenced to 16 months and ordered to pay a $300,000 fine.
"We're very pleased at the outcome and we feel that justice was done," said Charles Stillman, a lawyer for Ghavami.
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By Bernard Vaughan
NEW YORK | Wed Jul 24, 2013 5:37pm EDT
(Reuters) - Three former UBS AG bankers were sentenced to prison on Wednesday for deceiving U.S. municipalities by rigging bids to invest municipal bond proceeds, with the longest sentence at 27 months, a fraction of what prosecutors had sought.
Gary Heinz, 40, a former bank vice president who was caught on recordings discussing the scheme, received the prison sentence of 27 months. U.S. District Judge Kimba Wood also ordered Heinz to pay a $400,000 fine.
Peter Ghavami, 45, who left UBS in 2007 as global head of commodities, was sentenced to 18 months in prison and ordered to pay a $1 million fine; and Michael Welty, 49, a former vice president, was sentenced to 16 months and ordered to pay a $300,000 fine.
"We're very pleased at the outcome and we feel that justice was done," said Charles Stillman, a lawyer for Ghavami.
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Read more: http://www.reuters.com/article/2013/07/24/us-ubs-bidrigging-ghavami-idUSBRE96N1D520130724
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