Thursday, February 28, 2008
Two more defendants, one an officer at UBS, pleaded guilty to insider trading. According to a press release (here) issued by the USAO for the Southern District of New York:
Between December 2001 and August 2006, GUTTENBERG repeatedly sold to TAVDY and another individual material,nonpublic information regarding upcoming upgrades and downgrades in UBS analysts’ securities recommendations. Investors, including institutional investors and professional money managers, regularly relied on UBS analysts’ ratings of public companies’ securities. As a result, changes in UBS analysts’ recommendations regarding a particular company’s securities were material to investors and often had a direct effect on the trading price of that company’s stock.
The two defendants were among thirteen charged with insider trading that included employees from Bank of America, Morgan Stanley, and Bear Stearns in addition to UBS. Only one defendant is still awaiting trial as all the others have now entered guilty pleas. (ph)