Ex-General Counsel of UBS Settles Insider Trading Probe by NY AG
The former general counsel of investment bank UBS AG has agreed to pay $6.5 million to resolve an insider trading investigation by the New York attorney general.
The settlement calls for lawyer David Aufhauser to give up a $6 million bonus he received and pay a $500,000 civil penalty, the New York Times reports. New York officials claimed Aufhauser ordered his broker to sell his auction rate securities minutes after receiving an e-mail warning of trouble in the market.
He will also be barred from New York law practice and the securities industry for two years, the Wall Street Journal reports (sub. req.). He does not admit or deny wrongdoing in the case.
Aufhauser resigned from UBS in August. He is also a former general counsel of the U.S. Treasury, Bloomberg News reports.
Dow Jones quoted a statement from New York Attorney General Andrew Cuomo. “While thousands of UBS customers were kept in the dark as the auction rate market began to collapse, David Aufhauser, one of the company’s top executives, acquired insider information and quietly dumped his personal holdings,” Cuomo said.
