Former of global head of the UBS Securities LLC municipal securities group David Shulman has officially left the company, after being on administrative leave since July, the company confirmed yesterday.
Also head of the Fixed-Income Americas unit, Shulman stopped working at UBS Aug. 15, a spokeswoman said. Bloomberg LP first reported the news on Wednesday night.
Shulman played a leading role in the firm's auction-rate securities dealings that have since been subject to legal controversy. Like many other firms, UBS allegedly pushed ARS on investors as "cash-like" securities, even as people inside the firm expressed doubts about their liquidity.
Shulman himself began selling his personal holdings of auction-rate securities last August, according to a lawsuit filed by Massachusetts Secretary of Commonwealth William Galvin. Between Nov. 1 and Feb. 12, seven unnamed managers sold at least $21 million of personal holdings in auction-rate debt, a lawsuit filed by New York Attorney General Andrew Cuomo said.
UBS has since settled with Massachusetts, New York, and other state and federal regulators. They agreed to pay $150 million in fines and provide liquidity or buy back $22.1 billion of auction-rate securities. UBS neither admitted nor denied wrongdoing as part of the settlements.