Three former UBS executives urged a U.S. appeals court on Friday to reverse their convictions for conspiring to deceive U.S. cities and towns by rigging bids to invest municipal bond proceeds.
Reuters reports that lawyers for Gary Heinz, Peter Ghavami and Michael Welty told the 2nd U.S. Circuit Court of Appeals in New York that prosecutors pursued charges too late after incorrectly reading a 1989 statute born of the savings-and-loan crisis.
The Justice Department said that under a statute covering a wire fraud that 'affects a financial institution', it could bring charges in 10 years rather than the normal five in light of settlements banks including UBS were forced to pay.
But Nathaniel Marmur, Ghavami's lawyer, said the statute intended to cover instances where banks were victimized, not when they themselves engaged in wrongdoing.
To access the complete Reuters article hit the link below: