David Shulman, who ran the auction-rate securities business for UBS, has settled allegations of insider trading with NY Attorney General Andrew Cuomo’s office, agreeing to pay $2.75 million.
Shulman was the subject of a criminal insider trading probe after he sold his personal holdings of $1.45 million in student loan auction rate securities ahead of the market collapse in 2008.
Under the settlement agreement, Shulman is also subject to a suspension from employment by a broker or dealer for 30 months, according to the Wall Street Journal.
In 2008 Cuomo sued the bank for its part in the ARS scandal, which later settled the case and agreed to buy back nearly $20 billion auction-rate securities from clients. Cuomo’s office reached a similar deal with UBS’s then-general counsel.
