Ex-UBS Execs Cheated Cities In Muni Bond Scam, Jury Told

Law360, New York (August 27, 2012, 8:50 PM EDT) -- Three former UBS AG executives cheated municipalities out of money by rigging bids on investments tied to municipal bonds, prosecutors said Monday as they wrapped up a monthlong trial on fraud charges.

Former UBS employees Peter Ghavami, Gary Heinz and Michael Welty conspired with contacts at large capital investors like Bank of America NA and JPMorgan Chase & Co. to defraud cities and towns they were supposed to be working for, prosecutors told jurors. The jury is expected to begin its deliberations Tuesday.

While at UBS,...
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