A former executive at UBS, with U.S. operations based in Stamford, has agreed to pay nearly $2.8 million to settle civil insider trading allegations made by New York state regulators.
State Attorney General Andrew Cuomo had accused former UBS municipal securities chief David Shulman of selling off personal holdings in auction rate securities in late 2007 as markets for that type of investment were on the verge of failing.
Investigators say he had inside information about the impending collapse and got out ahead of the firm’s customers. The settlement requires him to serve a 2 1/2 year suspension from acting as a securities broker.
Defense lawyer Robert Anello says Shulman has not admitted wrongdoing but is “pleased to have closure.” (AP)
