Daily News: July 19, 2012

Ex-JPMorgan Banker Admits Muni Bond Fraud


Reuters reported that a former JPMorgan Chase banker pleaded guilty to fraudulently rigging a municipal finance contract ten years ago.

Reuters said Alexander Wright pleaded guilty in a federal court to one count of conspiracy to commit wire fraud for manipulating the bidding process for a June 2002 contract. The contract was tied to a $31 million bond offering for a New Jersey state healthcare facility.

Reuters noted that the plea is the latest in a broad government investigation of the $3.7 trillion U.S. municipal bond market that has focused on rooting out schemes to fix prices and rig bids on bond transactions.

To read the full Reuters news story, click here.