David Aufhauser, former general counsel for UBS, has agreed to forfeit his entire 2008 incentive compensation of $6 million to settle a probe by the New York AG’s office on allegations of insider trading in the auction-rate securities market, according to the WSJ.
Under the settlement agreement, Aufhauser will also reportedly pay a $500,000 fine and accept a two-year ban on practicing law, working in the securities industry, or serving as an officer or director of a public company. The AG’s investigation looked into Aufhauser’s sale of ARS “with early, inside knowledge of problems in the marketplace.” The WSJ reports that
On an Amtrak train the evening of Dec. 14, Mr. Aufhauser read an email from the firm’s chief risk officer detailing some of the problems facing the auction-rate securities market, namely buyers were dwindling and the bank’s own inventory of the securities were swelling, according to Mr. Cuomo’s settlement documents. He quickly shot an email to his financial adviser, “I want to get out of arcs [auction rate certificates]. Let’s talk on Monday.” His adviser sold $250,000 of the securities.
One response to “Former General Counsel of UBS Settles ARS Insider Trading Case”
[…] was most recently mentioned in Securities Docket, however, in October 2008, when we noted here that Aufhauser had agreed to forfeit his entire 2008 incentive compensation of $6 million to […]