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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThree former UBS execs convicted of fraud involving contracts for muni bond proceeds investment
Three Former UBS Executives Convicted for Frauds Involving Contracts Related to the Investment of Municipal Bond Proceeds
WASHINGTON A federal jury in New York City today convicted three former financial services executives for their participation in frauds related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts , the Department of Justice announced.
Peter Ghavami, Gary Heinz and Michael Welty, all former UBS AG executives, were found guilty on conspiracy and fraud charges in the U.S. District Court in New York City. Ghavami was found guilty on two counts of conspiracy to commit wire fraud and one count of substantive wire fraud. Heinz was found guilty on three counts of conspiracy to commit wire fraud and two counts of substantive wire fraud. Welty was found guilty on three counts of conspiracy to commit wire fraud. Heinz was found not guilty on one count of witness tampering and Welty was found not guilty on one count of substantive wire fraud.
The trial began on July 30, 2012. Ghavami, Heinz and Welty were initially indicted on Dec. 9, 2010.
For years, these executives corrupted the competitive bidding process and defrauded municipalities across the country out of money for important public works projects, said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Divisions criminal enforcement program. Todays convictions demonstrate that the division is committed to holding accountable those who seek to unfairly and illegally undermine competitive markets.
According to evidence presented at trial, while employed at UBS, Ghavami, Heinz and Welty participated in separate fraud conspiracies and schemes with various financial institutions and with a broker, at various time periods from as early as March 2001 until at least November 2006. These financial institutions, or providers, offered a type of contractknown as an investment agreement to state, county and local governments and agencies, and not-for-profit entities, throughout the United States. The public entities were seeking to invest money from a variety of sources, primarily the proceeds of municipal bonds that they had issued to raise money for, among other things, public projects. Public entities typically hire a broker to assist them in investing their money and to conduct a competitive bidding process to determine the winning provider.
- more -
http://www.stopfraud.gov/iso/opa/stopfraud/2012/10-at-1071.html
WASHINGTON A federal jury in New York City today convicted three former financial services executives for their participation in frauds related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts , the Department of Justice announced.
Peter Ghavami, Gary Heinz and Michael Welty, all former UBS AG executives, were found guilty on conspiracy and fraud charges in the U.S. District Court in New York City. Ghavami was found guilty on two counts of conspiracy to commit wire fraud and one count of substantive wire fraud. Heinz was found guilty on three counts of conspiracy to commit wire fraud and two counts of substantive wire fraud. Welty was found guilty on three counts of conspiracy to commit wire fraud. Heinz was found not guilty on one count of witness tampering and Welty was found not guilty on one count of substantive wire fraud.
The trial began on July 30, 2012. Ghavami, Heinz and Welty were initially indicted on Dec. 9, 2010.
For years, these executives corrupted the competitive bidding process and defrauded municipalities across the country out of money for important public works projects, said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Divisions criminal enforcement program. Todays convictions demonstrate that the division is committed to holding accountable those who seek to unfairly and illegally undermine competitive markets.
According to evidence presented at trial, while employed at UBS, Ghavami, Heinz and Welty participated in separate fraud conspiracies and schemes with various financial institutions and with a broker, at various time periods from as early as March 2001 until at least November 2006. These financial institutions, or providers, offered a type of contractknown as an investment agreement to state, county and local governments and agencies, and not-for-profit entities, throughout the United States. The public entities were seeking to invest money from a variety of sources, primarily the proceeds of municipal bonds that they had issued to raise money for, among other things, public projects. Public entities typically hire a broker to assist them in investing their money and to conduct a competitive bidding process to determine the winning provider.
- more -
http://www.stopfraud.gov/iso/opa/stopfraud/2012/10-at-1071.html
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Three former UBS execs convicted of fraud involving contracts for muni bond proceeds investment (Original Post)
ProSense
Sep 2012
OP
banned from Kos
(4,017 posts)1. But the Obama DOJ/SEC won't EVER prosecute anyone!
I hear that lie a lot.
Translation = "they won't prosecute Jamie Dimon or Lloyb Blankfein"!
Get a grip. That will never happen.
ProSense
(116,464 posts)2. Who are you talking to?
But the Obama DOJ/SEC won't EVER prosecute anyone!
I hear that lie a lot.
Translation = "they won't prosecute Jamie Dimon or Lloyb Blankfein"!
Get a grip. That will never happen.
I hear that lie a lot.
Translation = "they won't prosecute Jamie Dimon or Lloyb Blankfein"!
Get a grip. That will never happen.
How do you know who is or isn't going to be prosecuted?
banned from Kos
(4,017 posts)3. Not you - you are well informed. It was intended to be ironic.
And intended for the "Obama is in cahoots with Wall St" crowd.
ProSense
(116,464 posts)4. I'd rather stick to the OP topic. n/t
DonRedwood
(4,359 posts)8. on the second page of smilies is a "sarcasm" button
I always forget to use it and I'm always getting myself in trouble.
ProSense
(116,464 posts)5. Kick! n/t
MagickMuffin
(15,942 posts)6. I can only hope Phil Gramm gets nailed
He has caused so much harm to everyone but his financial buddies. He deserves prison time. No doubt about it.
ProSense
(116,464 posts)7. Wonder if he's in hiding. n/t
Left Coast2020
(2,397 posts)9. So is this the tip of the pervibal ice berg?
Certainly others were involved with this scheme?
ProSense
(116,464 posts)10. Not only was he a
top executive for UBS, but he also served as a top exec for Lehman.
<...>
Russia represents an important opportunity for Lehman Brothers and the Firm plans to offer a full range of investment banking and capital markets services. In recent months Lehman Brothers has focused on building out its offering in Russia and ensuring the most talented team is in place in order to successfully deliver our global capabilities. To that end Peter Ghavami has joined Lehman Brothers as Head of Capital Markets and will partner with Nicholas Jordan, Head of Investment Banking Russia, to build out the overall platform. Mr. Ghavami joins from UBS where he was previously global Head of Commodities.
http://www.finyear.com/LEHMAN-BROTHERS-obtient-une-licence-BROKER-DISTRIBUTEUR-en-Russie_a4421.html
Russia represents an important opportunity for Lehman Brothers and the Firm plans to offer a full range of investment banking and capital markets services. In recent months Lehman Brothers has focused on building out its offering in Russia and ensuring the most talented team is in place in order to successfully deliver our global capabilities. To that end Peter Ghavami has joined Lehman Brothers as Head of Capital Markets and will partner with Nicholas Jordan, Head of Investment Banking Russia, to build out the overall platform. Mr. Ghavami joins from UBS where he was previously global Head of Commodities.
http://www.finyear.com/LEHMAN-BROTHERS-obtient-une-licence-BROKER-DISTRIBUTEUR-en-Russie_a4421.html