The Wall Street Journal reported that three former UBS employees were sentenced to prison terms for their participation in frauds relating to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts.

The Journal said the former co-head of a UBS municipal-bond desk in New York, Peter Ghavami was sentenced to an 18-month prison term and was also fined $1 million. Two of Ghavami’s former UBS associates, Gary Heinz and Michael Welty, were also sentenced and fined to 17-months and $400K and 16-months and $300K, respectively, the Journal said.

According to a justice department news release, these three former UBS executives were found guilty on conspiracy and fraud charges in the U.S. District Court in New York City in the summer of 2012. Ghavami was found guilty on two counts of conspiracy to commit wire fraud and one count of substantive wire fraud. Heinz was found guilty on three counts of conspiracy to commit wire fraud and two counts of substantive wire fraud. Welty was found guilty on three counts of conspiracy to commit wire fraud. Heinz was found not guilty on one count of witness tampering and Welty was found not guilty on one count of substantive wire fraud.

The trial began on July 30, 2012. Ghavami, Heinz and Welty were initially indicted on December 9, 2010.

To read the Wall Street Journal Story: click here.

To read the Department of Justice news release click here.