Justice Reaches 6th Plea Agreement In GIC Probe

WASHINGTON — Adrian Scott-Jones, a former agent of a Florida-based guaranteed investment contract broker, pleaded guilty to two separate fraud conspiracies in connection with the brokering of GICs in the municipal market.

The Justice Department announced the plea agreement Wednesday in a Manhattan federal court. The plea agreement is the sixth the department has reached with individuals as part of its ongoing antitrust investigation of the municipal bond market.

According to the Justice Department, Scott-Jones helped manipulate the bidding process for GICs, giving certain favored GIC providers a "last look" at the bids from other providers. His company, which the Justice Department did not identify, was based in North Palm Beach and Ocala, Fla.

Each fraud conspiracy charge carries a maximum sentence of five years in prison and a $250,000 fine. The wire charge, to which Scott-James also pleaded guilty, carries a maximum prison sentence of 20 years and a $250,000 fine.

Scott-Jones has agreed to cooperate with the Justice Department in its ongoing investigation.

An Internet search shows that Scott-Jones worked for EuroBrokers, a New York-based firm that had a municipal finance group specializing in GICs. He also was a consultant to Tradition Inc., which also had a municipal investment group.

For reprint and licensing requests for this article, click here.
Bankruptcy
MORE FROM BOND BUYER