Wednesday, November 30 ,2011 : CONNECTICUT BANKER RAIDED COMPANY FUNDS FOR INTERNET GAMBLING
UBS regional director defrauded his employers of more than $673,000 in 84 fraudulent bank wire transfers
Between November 2007 and January 2010, a senior employee of UBS Securities defrauded the company of $673,447.47, which he used to gamble on unidentified internet websites, Forbes reports.
Shawn Reilly (34) joined the bank in 2004 and was discharged in April this year when his activities were uncovered in a Financial Industry Regulatory Authority investigation that led to a court case, a guilty plea this week and a sentence of 33 months of imprisonment, followed by three years of supervised release, and a court order to pay $673,447.47 in restitution.
The Forbes report reveals that Reilly was suspended in July 2011 for failing to respond to requests by the regulator for information. In October 2011, FINRA converted the suspension to a bar.
Federal prosecutors, who subsequently prosecuted a criminal case against Reilly, said he was a director in the bank's settlements group based at Stamford, CT. From November 2007 through January 2010, he oversaw activities that including managing and maintaining suspense accounts, and ensuring accurate and timely payments.
Between February 2009 and April 2011, Reilly was responsible for approximately 84 fraudulent wire transfers, which resulted in over $673,000 of company funds being wrongfully transferred to his personal accounts for his own benefit. "This fraud was accomplished when Reilly caused his subordinates to unknowingly make false journal entries and fraudulent wire transfers. As noted in FINRA’s records, prosecutors alleged that some of those diverted funds were used to pay Reilly’s gambling debts.
On September 6, 2011, Reilly waived his right to indictment and pleaded guilty to one count of bank fraud.
On November 30, 2011, Reilly was sentenced in the United States District Court in Bridgeport, CT.