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Sun August 7, 2011
Municipal Bond Settlement
By KRWG News
New Mexico – At least five New Mexico entities will share in more than $1.4 million as the result of bid-rigging allegations involving six municipal bond deals.
The Albuquerque Journal (http://bit.ly/opyIMD) reports that UBS Financial Services LLC and J.P. Morgan Securities LLC have agreed to pay more than $388 million to settle claims arising from more than 193 bond transactions in 30 states from 1997 to 2005.
New Mexico victims include the state Finance Authority, the University of New Mexico, Presbyterian Healthcare Services, the New Mexico Educational Assistance Foundation and the New Mexico Heath Facility Authority.
Authorities say the bid rigging allowed investment firms to pay bond issuers less than fair market value for investment of bond proceeds, cheating them out of millions of dollars and making huge profits.
Information from: Albuquerque Journal, http://www.abqjournal.com
Copyright 2011 The Associated Press.