Peter Ghavami, former co-head of UBS AG's municipal-derivatives group, goes on trial today with two ex-colleagues in a bond bid-rigging probe in which banks have paid more than $700 million to settle U.S. claims, Bloomberg News reported today. Ghavami, Gary Heinz and Michael Welty are charged in a six- count indictment with "long-running conspiracies and schemes to defraud" municipal-bond issuers and U.S. tax authorities by fixing prices on agreements for investing the proceeds of municipal-bond sales.Prosecutors expect to prove “the knowing and active participation” of UBS, JPMorgan Chase & Co., Bank of America Corp. and General Electric Co. in the fraud alleged against the three former UBS executives, according to a July 6 court filing. Bank of America, JPMorgan Chase, UBS, Wells Fargo & Co. and GE Funding Capital Market Services, a former unit, have paid more than $700 million to settle claims by the government. Beverly Hills, Calif.-based CDR and 13 individuals have pleaded guilty to criminal charges.
