UBS was found involved in a securities fraud, ordered to post a $35 million bond



image UBS was ordered to either pledge assets or post a $35 million bond after a Connecticut court found "probable cause" that the bank committed securities fraud in a deal with Pursuit Partners according to the reports of the hedge fund’s lawyers.

John Blawie, a Superior Court Judge, found that there is a probable cause that UBS exploited secret insider information obtained from its relationship with the ratings agencies, Moody’s and Standard & Poor’s to commit securities fraud in the sale of collateralized debt obligation notes to Pursuit.

"The court takes UBS employees at their word when they referenced their Notes, these purported investment grade securities which they sold, as ‘crap’ and ‘vomit’, for UBS alone possessed the knowledge of what their product was truly worth," lawyers for the plaintiff quoted the judge’s statement as saying.

ECJ




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