Ex-bond trader jailed and fined for price manipulation

Prison Bars

A former bond trader was sentenced to 2-1/2 years in prison Tuesday after admitting to manipulating prices of mortgage debt, causing a $9m loss at a unit of Bank of New York Mellon.

Reuters reports that Douglas Green, 50, was also ordered by U.S. District Judge Freda Wolfson in Trenton, New Jersey, to pay $9.2m in restitution after pleading guilty in 2011 to one count of securities fraud, U.S. Attorney Paul Fishman said in a statement.

Prosecutors said the Boca Raton, Florida, resident in 2004 began trying to hide significant trading losses by entering fraudulent transactions for an account he managed at broker-dealer Crocker Securities.

The fraudulent transactions inflated prices of collateralized mortgage obligations to correspond with losses in the Crocker account, authorities said.

To access the complete Reuters article hit the link below:

Ex-bond trader in N.J. gets 2-1/2 years in prison for faking prices

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