Former UBS Exec Sentenced in Manhattan

New York (HedgeCo.Net) – A former UBS AG executive has been sentenced to 6-1/2 years in prison after pleading guilty to selling private information about the bank’s stock recommendations.  Mitchel Guttenberg, a former manager in UBS’ equity research department, was accused by the prosecution of running the most pervasive insider trading rings since the 1980’s.

“From the moment he joined the investment review committee he planned to give that information to others to use illegally,” Judge Deborah Batts of U.S. District Court in Manhattan said yesterday.

Guttenberg didn’t try to deny the allegations and instead plead guilty to two counts of conspiracy and four counts of securities fraud.  He admitted that on numerous occasions he tipped off two traders about analyst stock recommendations along with dispersing information about UBS analysts’ upgrades and downgrades that were used to net more than $17.5 million over hundreds of transactions.

Guttenberg was one of a dozen people charged with orchestrating the insider trading ring.  Other employees came from such companies as Morgan Stanley, Bank of America and Bear Stearns.  His sentence includes three years of supervision following his incarceration at a minimum security prison in New Jersey. 

Julie Scuderi
Senior Editor for HedgeCo.Net

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