The former employee of the bank UBS has agreed to pay 2.75 million dollars as part of an agreement to end the case against him. The case was about insider trading in 2007. The allegation is against the former head of the division of UBS trading municipal bonds David Shulman, and consists in the fact that at the end of 2007 he sold his personal items in a specific type of securities. Shulman held bonds with interest rate, which is formed of a special type of auction – so called. auction rate securities, forward USA Today. Right at the end of 2007, the market for these securities has been on the brink of collapse. The prosecution claims that Shulman had sold their securities that were worth 1.45 million dollars, knowing that the market will collapse. Sales were made before the securities are sold to customers of the bank. This is precisely the breach of trade rules. “While thousands of UBS customers were not given warning of the coming market crash, Shulman, who was one of the most senior officials of the bank, he used inside information and has escaped from his papers,” the indictment states.
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