NEW YORK (Reuters) - A former top UBS AG fixed-income executive has agreed to pay $2.75 million to settle an insider-trading probe by New York Attorney General Andrew Cuomo.
David Shulman, who had been the Swiss bank's global head of municipal securities and head of fixed income for the Americas, was accused of selling his personal holdings of auction-rate securities when he knew that UBS' market for those securities was distressed and that upcoming auctions could fail.
Cuomo alleged that Shulman on December 13, 2007, ordered his broker to immediately sell his $1.45 million of student loan auction-rate securities. The $330 billion auction-rate market froze in February 2008 and has yet to recover.
Shulman is the second former UBS official to resolve an insider-trading probe by Cuomo into auction-rate debt, the attorney general said.
Cuomo has also settled with 13 banks and broker-dealers over their roles in the market's collapse. This has resulted in the repurchase of more than $60 billion of securities from investors.
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A lawyer for Shulman did not immediately return a call seeking a comment.
(Reporting by Jonathan Stempel; editing by John Wallace)
