Prison for former UBS client manager guilty of insider trading

4 November 2008

An ex-UBS institutional client manager who was arrested along with 13 others as part of an investigation into insider trading on Wall Street has received the biggest prison sentence yet to be handed down in relation to the crackdown.

Bloomberg reports that Mitchel Guttenberg received six and a half years in prison for his role in leaking confidential information to two hedge fund traders who used it to make around $15 million on the markets.

Mr Guttenberg, who received "hundreds of thousands of dollars" for providing the tips, pleaded guilty to insider trading in February.

In addition to serving prison time, he has also been ordered to forfeit $15.8 million.

Delivering sentence, US district judge Deborah Batts said Mr Guttenberg had intended to "give insider information to others to use illegally" from the moment he was appointed to the Zurich-based bank's investment review committee in 2001.

Mr Guttenberg was arrested in March 2007 as part of a wider probe that also involved employees of Bear Stearns, Morgan Stanley and Bank of America. All of the defendants pleaded guilty to insider trading.

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