U.S. prosecutors are seeking record prison terms, including one approaching 20 years, for three former UBS AG bankers who were convicted of conspiring to deceive U.S. cities and towns by scheming to rig bids to invest municipal bond proceeds. The government said Gary Heinz deserves the biggest punishment, and should spend at least 19-1/2 years in prison. It also said former global head of commodities Peter Ghavami should serve at least 17-1/2 years, while defendant Michael Welty deserves at least 11-1/4 years. All three worked on the same municipal securities desk at UBS, the Swiss bank. At least 19 people have been convicted or pleaded guilty in the government's probe of the $3.7 trillion U.S. municipal bond market, focusing on the rigging of returns paid on the short-term investment made with bond proceeds. The probe has touched some of the world's biggest banks. No defendant has yet received a prison sentence longer than four years, according to the U.S. Department
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