It is the third consecutive month that high-level bankers have been found guilty of manipulating the U.S. municipal bond market.
This time it is three former UBS executives who today were convicted of corrupting bidding processes and defrauding cities across the country, according to a Department of Justice press release.
The defendants, Peter Ghavami, Gary Heinz, and Michael Welty, were charged in 2010 but denied any wrongdoing, Reuters reported.
A federal jury in New York City found all three guilty of conspiring to commit wire fraud. Ghavami and Heinz were also convicted of substantive wire fraud.
"Ghavami, Heinz and Welty deprived the municipalities of competitive interest rates for the investment of tax-exempt bond proceeds that were to be used by municipalities to refinance outstanding debt," according to the release.
The DOJ, which has been leading such investigations under pressure from Obama's Financial Fraud Enforcement Task Force (FFETF), was also successful in the conviction of former JPMorgan Chase & Co banker Alexander Wright on the same charges, Reuters reported.
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