Release Date: December 3, 2009
For immediate release
The Federal Reserve Board on Thursday announced the issuance of a combined Consent Order of Prohibition and Order of Assessment of a Civil Money Penalty against Francesco Rusciano, a former institution-affiliated party of UBS AG, Zurich, Switzerland. The consent order resolved administrative charges brought by the Federal Reserve Board in January 2009. Those charges alleged that Rusciano, while an employee of a UBS subsidiary in the United States, engaged in unsafe and unsound banking practices, breached his fiduciary duties, and committed violations of law by concealing substantial losses arising from his proprietary trading in Brazilian Real/United States Dollar non-deliverable forward contracts and Brazilian bonds on behalf of UBS AG. Rusciano consented to issuance of the Order and a civil money penalty assessment of $75,000 without admitting the allegations.
Under the Order, payment of the civil money penalty will be dependent on the terms of the resolution of an unrelated enforcement action brought by the Securities and Exchange Commission against Rusciano that involves hedge funds that Rusciano had operated.
A copy of the Order is attached.