WASHINGTON Jan 3 A former broker with the
inter-dealer brokerage unit of a Swiss bank was sentenced to 18
months in prison on Thursday for rigging bids to invest the
proceeds from municipal bonds, the Justice Department said.
Adrian Scott-Jones was also fined $12,500 in a hearing at
the U.S. District Court in Manhattan. He worked for the U.S.
unit of Compagnie Financiere Tradition in Switzerland.
Some of the world's largest banks have been ensnared in a
probe into allegations that their employees decided in advance
which investment house would win the auctions of guaranteed
investment contracts - essentially investments that cities and
counties buy with proceeds from municipal bond sales.
After selling bonds, municipalities park the proceeds in the
interest-bearing contracts until they need the funds for work on
the project they have financed.
Scott-Jones had pleaded guilty to conspiring with General
Electric affiliates between 1999 and 2006 to pay cities
and towns less when they invested the proceeds of municipal
Twenty people have been charged in connection with this and
similar schemes following a broad investigation by the U.S.
Justice Department of the $3.7 trillion U.S. municipal bond
A total of 19 have been convicted or pleaded guilty so far,
and one is awaiting trial. Bankers working for GE, UBS AG
and JPMorgan Chase & Co are among those
convicted or found guilty.