No prison for former JPMorgan exec in muni bond bid-rigging case

A former JPMorgan Chase & Co (JPM) vice president received no prison time on Wednesday after pleading guilty and cooperating with authorities investigating bid rigging and fraud schemes related to investment contracts for municipal bond proceeds. James Hertz, 56, pleaded guilty to wire fraud and conspiracy charges in 2010 and cooperated in a wide-ranging investigation of the $3.7 trillion U.S. municipal bond market. Prosecutors say that from 2001 to 2006, Hertz and others engaged in bid-rigging, determining in advance whose employer or institution would win contracts for investment and other municipal finance activities. Hertz was the eighth of 13 people to plead guilty as part of the investigation and the first from JPMorgan, which agreed in 2011 to pay $228 million to settle federal and state bid-rigging investigations.


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