Muni Bond Probe Nails Three Former UBS Bankers
According to a Wall Street Journal report, three former UBS bankers were indicted for their part in a bid rigging conspiracy to defraud government entities seeking to invest proceeds raised through municipal bonds. The indictment filed on December 9, 2010 alleges that the former UBS bankers and co-conspirators at other institutions secretly manipulated the bidding process on contracts to manage money for local governments. The named parties included Peter Ghavami, Gary Heinz and Michael Welty.
The investigations by the Justice Department into the municipal securities markets have been on the upswing recently and reports are that there will be “a lot more activity” in the coming weeks and months.