The Federal Reserve Board on Thursday announced the issuance of an Order of Prohibition against Hanspeter Walder, a former employee and officer of the New York Branch of UBS AG, Zurich, Switzerland. The Order was issued relating to Mr. Walder's violations of law, unsafe and unsound banking practices, and breaches of fiduciary duties to UBS and its customers in connection with his embezzlement of funds for personal use.
Mr. Walder, a private banker, embezzled more than $70 million from at least 22 UBS private client accounts under his responsibility. Mr. Walder pled guilty to sixteen counts of embezzlement and misapplication by a bank officer or employee and is currently serving a 97-month prison sentence. Mr. Walder was ordered to make restitution of $70 million and to pay a fine of $1 million. As required by the court at sentencing, Mr. Walder has consented to the issuance of the Order of Prohibition.
A copy of the Order is attached.
Attachment (114 KB PDF)