Ex-UBS AG managing director Peter Ghavami and his former colleagues were found guilty in Manhattan federal court today of rigging bids for contracts to invest the proceeds of municipal bond sales.

Jurors found Ghavami and former UBS employees Gary Heinz and Michael Welty guilty of conspiring to rig bids. The three were accused of defrauding municipal-bond issuers by manipulating the competitive bidding process for investment transactions. Zurich-based UBS and other banks have paid more than $700 million to settle U.S. claims over the scheme.

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