{"id":5175,"date":"2011-05-16T00:00:00","date_gmt":"2011-05-16T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/05\/ubs_financial_reaches_160m_set"},"modified":"2022-04-04T13:46:11","modified_gmt":"2022-04-04T18:46:11","slug":"ubs-financial-reaches-160m-set","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ubs-financial-reaches-160m-set\/","title":{"rendered":"UBS Financial Reaches $160M Settlement with the SEC and Justice Department Over Securities Fraud, Antitrust, and Other Charges Related to Municipal Bond Market"},"content":{"rendered":"

UBS Financial Services Inc. <\/a>has consented to a $160 million settlement over charges that it took part in anticompetitive practices in the municipal bond market. The Securities and Exchange Commission and the US Justice Department announced the settlement together. 25 state attorneys generals and 3 federal agencies had accused the financial firm of rigging a minimum of 100 reinvestment transactions in 36 states, which placed the tax-exempt status of over $16.5 billion in municipal bonds at peril. Justice officials say that the unlawful conduct at issue, which involved former UBS officials, took place between June 2001 and June 2006.<\/p>\n

According to SEC municipal securities and public pensions enforcement unit chief Elaine Greenberg, ex-UBS officials engaged in \u201csecret arrangements,\u201d played various roles, and took part in \u201cillegal courtesy bids, last looks for favored bidders, and money to bidding engagements\u201d in the guise of \u201cswap payments\u201d to \u201cdefraud municipalities\u201d and \u201cwin business.\u201d The SEC contends that between October 2000 until at least November 2004, the financial firm rigged a minimum of 12 transactions while serving as bidding agents for contract providers, won at least 22 muni reinvestment instruments, entered at least 64 \u201ccourtesy\u201d bids for contracts, and paid undisclosed kickbacks to bidding agents at least seven times. The SEC says that UBS indirectly deceived municipalities and their agents with their fraudulent misrepresentations and omissions and rigged bids to make them appear as if they were competitive when they actually weren\u2019t.<\/p>\n

UBS, which left the municipal bond market in 2008, says that the \u201cunderlying transactions\u201d involved were in a business that is no longer a part of the financial firm and that the employees who were involved don\u2019t work there anymore. Of the $160 million settlement, $47.2 million will go to the SEC, which in turn will give the money to the 100 muni issuers as restitution, about $91 million will go to the states, and $22.3 million will go to the IRS.<\/p>\n

Related Web Resources:<\/strong><\/p>\n

United States Justice Department<\/a><\/p>\n

Internal Revenue Service
\n<\/a><\/p>\n

Securities and Exchange Commission<\/a><\/p>\n


\nMore Blog Posts:<\/strong>
\nUBS Financial Services Fined $2.5M and Ordered to Pay $8.25M Over Lehman Brothers-Issued 100% Principal-Protection Notes, Institutional Investors Securities Blog, April 12, 2011<\/p>\n

Securities Fraud Lawsuit Against UBS Securities LLC by Detroit Pension Funds Won\u2019t Be Remanded to State Court, Says District Court, Institutional Investors Securities Blog, January 17, 2011<\/p>\n

UBS to Pay $2.2M to CNA Financial Head for Lehman Brothers Structured Product Losses<\/a>, Stockbroker Fraud Blog, January 4, 2011<\/p>\n

 <\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

UBS Financial Services Inc. has consented to a $160 million settlement over charges that it took part in anticompetitive practices in the municipal bond market. The Securities and Exchange Commission and the US Justice Department announced the settlement together. 25 state attorneys generals and 3 federal agencies had accused the financial firm of rigging a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3951,3795,3761,3755],"tags":[],"class_list":["post-5175","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-municipal-securities","category-sec-settlements","category-securities-and-exchange-commis","category-ubs"],"yoast_head":"\nUBS Financial Reaches $160M Settlement with the SEC and Justice Department Over Securities Fraud, Antitrust, and Other Charges Related to Municipal Bond Market — Investor Lawyers Blog — May 16, 2011<\/title>\n<meta name=\"description\" content=\"UBS Financial Services Inc. has 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