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.
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