Thursday, May 5, 2011

More Fraud Charges Against UBS

The hits just keep on coming.  UBS has paid huge fines for Auction Rate Securities fraud, Principal Protection Note fraud, and tax fraud, as well as losing case after case to its own investors who purchased Lehman Principal Protection Notes. Now it has settled fraud charges with the SEC which accused the firm of fraudulently rigging at least 100 municipal bond reinvestment transactions in 36 states and generating millions of dollars in ill-gotten gains.

UBS has agreed to pay $47.2 million that will be returned to the affected municipalities. UBS and its affiliates also agreed to pay $113 million to settle parallel cases brought by other federal and state authorities.

SEC Charges UBS with Fraudulent Bidding Practices Involving Investment of Municipal Bond Proceeds; 2011-105; May 4, 2011
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