A Manhattan federal jury began weighing charges against former UBS AG managing director Peter Ghavami and two of his ex-colleagues, who are accused of rigging bids for municipal finance deals.
Ghavami and former UBS employees Gary Heinz and Michael Welty face charges that they manipulated the competitive bidding process for investing the proceeds of municipal bonds. Prosecutors accused the men of cheating states, cities and other issuers by rigging their bids.
The trial follows a five-year federal investigation into the $3.7 trillion municipal bond market. As many as 13 people have pleaded guilty to charges stemming from the probe and as many as 15 have been convicted.
The case is U.S. v. Ghavami, 10-cr-1217, U.S. District Court, Southern District of New York (Manhattan).