David Shulman, the former head of municipal securities at UBS AG, has agreed to pay $2.8 million to settle allegations he dumped his personal holdings of student loan auction-rate securities after acquiring inside information.

Without admitting he did anything wrong, Shulman agreed to pay New York State to cease an investigation into his sale of auction-rate securities in December 2007, according to a settlement announced Thursday by state Attorney General Andrew Cuomo.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.