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US: Bid-rigging lands 3 UBS bankers in jail

By  |  July 24, 2013

Three former UBS AG banker Peter Ghavami have been sentenced by a federal judge in New York to jailtime, as well as ordered to pay fines, for their roles in a bid-rigging scheme. Peter Ghavami was ordered to serve 18 months in prison plus a $1 million fine for his participation in a municipality bid-rigging scheme. Prosecutors had sought a sentence of 17-1/2 years.Gary Heinz was sentenced to 27 months and a $400,000 fine; Michael Welty was sentenced to 16 months and a $300,000 fine. Both Heinz and Welty were former vice presidents. US District Judge Kimba Wood ordered the sentences on Wednesday. The three were found to have rigged bids to invest municipal bond proceeds; an attorney for the US Department of Justice antitrust division described Ghavami as the “architect” of the conspiracy.

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