Former UBS Director Sentenced To 33 Months In Jail Has Plans To Get Into The Culinary Industry Post-Prison

Author:
Publish date:
Updated on

Remember, back in April, when a bunch of UBS employees, were escorted out of the building and told not to come back, "pending an internal review into their conduct"? At the time we knew all four worked in operations and that they "were responsible for securities movements and payments," and speculated that perhaps this was another RBS/Jim Glover-esque incident. Today, some other details have been filled in.

Reilly, 34, of Congers, N.Y., was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 33 months of imprisonment, followed by three years of supervised release, for stealing more than $673,000 from UBS, his employer. According to court documents and statements made in court, from 1999 to April 2011, Reilly was employed at UBS in various positions. Most recently, Reilly worked at the Stamford office of UBS Securities, LLC, a wholly owned subsidiary of the parent company. From November 2007 through January 2010, Reilly held the position of director within the settlements group and, as such, was responsible for overseeing various activities, including managing and maintaining suspense accounts and making sure that accurate payments were made to and by UBS on a daily basis. From approximately February 2009 to April 2011, Reilly was responsible for approximately 84 fraudulent wire transfers that caused more than $673,000 of company funds to be transferred to his own personal accounts...Reilly used his position as a director in the settlements group to cause subordinates to make false journal entries and fraudulent wire transfers without them knowing that the entries were false and that the transfers were going to Reilly’s personal accounts. Today, Reilly was ordered to pay restitution in the amount of $673,447.47.

According to the sentencing memo, Reilly stole from the good people at UBS to feed a gambling addiction that often found him sports-betting on the job (by his own estimation, at the height of his problem Reilly would spend "8 hours gambling and 2 hours working") and sometimes on cruise ships.

Since pleading guilty, Reilly has completed a 33-day rehabilitation program and attends Gamblers Anonymous meetings weekly. He also says that he's committed to "making amends" for his wrongdoings, both "financial and otherwise." As for how he plans to deal with the former, being presumably unemployable in the securities industry, Reilly has stated that he "intends to pursue a culinary career [in order to] make the necessary restitution in a timely manner." The latter, however, is slightly more complicated, given that 1) the subordinates who were doing Reilly's bidding (and who were lied to when they asked Big R "for an explanation of a particular transfer") were all fired as a result and 2) That Reilly's brother was among the axed underlings. According to the sentencing memo, the two have had minimal contact since, which is somewhat understandable, given that Shawn's brother, the father of a newborn, has remained unemployed (Shawn's mother, the record states, is also upset with him).

Having said that, there is at least one person who has stuck by Reilly's side. That would be his live-in girlfriend of two years, Jamie, who, despite being among those canned by UBS as a result his scam, still sees the good in her guy. Here's the letter she wrote to the judge that presided over the case:

If she can forgive him,** maybe UBS can too? The old job back is probably out of the question but perhaps a loan to get his restaurant off the ground? The first $673,447.47 in profits are going to them anyway and if it ends up being as successful as Reilly expects, they can say they had a hand in getting Stamford's premier eatery off the ground! Seems like a win/win.

Related

Former Barclays Employee Sentenced To 52 Weeks In Jail

Breathe easy, friends of Bob Diamond and the guy who wrote "Anything for you, Big Boy," as a response to the request, "Can you manipulate Libor for me today when you've got a sec? Thanks a mill." In this case we speak of Rachael Claire Martin, the ex-Barlcays employee who used customer funds to pay for breast augmentations, dental work, liposuction, drugs, alcohol, shoes, and jewelry, despite initially telling authorities she covered the tricks and treats with money she earned engaging in sex for payment (an excuse anyone facing questioning for their own alleged misconduct should feel free to use. Just because one judge didn't buy it doesn't mean another won't). Mother-of-one and law graduate Rachael Martin, 24, ‘spent money like water' after getting a job with Barclays in Liskeard, Cornwall, where she was responsible for dealing with cheques. The stolen cash paid for a breast enlargement, thought to be worth £4,000, dental work worth £1,700, and liposuction, as well as nights out, drink and drugs. She has now been jailed after stealing £46,000 in just two months from her employers. Extravagances included £1,687.95 at the Windsor Place dental surgery in Liskeard, and £500 on unspecified cosmetic surgery at Harley Medical, the court heard. Martin also lavished £670 at exclusive jewellers Tiffany, and £506 on a pair of Jimmy Choo shoes. When she was arrested, Martin, from St Austell in Cornwall, told police she earned money as an escort in Bristol, adding that she was ‘a common prostitute’. But the claim was a cover for her criminal behaviour, said prosecutor Iain Leadbetter. Recorder Jeremy Wright jailed Martin, who has an eight-year-old son, for 52 weeks, telling her she had demonstrated a ‘concerted, clever and serious breach of trust'. Bank worker, 24, who stole £46,000 to fund boob job and party lifestyle told police she earned the money working as an escort [DM]

Former Barclays Employee Is Probably Going To Jail

Before anyone takes to Twitter to give the UK a piece of her mind, though, breathe easy: the misconduct is related to funds used to pay for breast augmentations and other cosmetic enhancements and could even take some of the heat off of Bob Diamond et al, who've yet to be accused of using customer money to pay for lipo. A bank clerk stole £46,000 to fund a boob job, liposuction and hair extensions to help her achieve her dream of becoming a model. Rachael Claire Martin admitted taking the money over an eight-week period from Barclays Bank in Liskeard, Cornwall, where she worked. The 24-year-old, from St Austell, Cornwall, is thought to have spent £4,000 on breast enlargement and £1,700 on dental work, which included teeth whitening treatment. The mother of one also travelled to Bristol on wild shopping sprees - buying make up and other items before enjoying nights out on the town back at home. While working at the bank, she regularly stole relatively small sums of £2,000 and £1,000, which she siphoned into her own account. On one occasion she managed to take £6,000. She initially denied 25 separate counts of theft from the bank between September 1 and October 3 in 2010. But the prosecution charged her with just one count of stealing £46,000 over the same period at Truro Crown Court yesterday and she pleaded guilty...She will face a jail term when she returns to court in September. Police were called when the theft was realised - but she had apparently already spent most of the stolen cash on her appearance, in the hope of realising her modelling dream. Barclays bank clerk stole £46,000 and spent it on boob job, liposuction and wild shopping sprees to fulfill her dream of becoming a model [DM]

UBS Whistleblower's $104 Million Award Poses Interesting Conundrum For Would-Be Snitches

Remember Bradley Birkenfeld? He's the guy who single-handedly made the U.S. government’s case against UBS and forced the Swiss bank to hand over the names of thousands of tax cheats, which resulted in the US scoring $780 million from UBS and may have inspired some 33,000 Americans to "voluntarily disclose offshore accounts to the IRS, generating more than $5 billion." And yet, despite his assistance, Birkenfeld wasn't immediately thanked for a job well done. Instead, he was sentenced to forty months in prison (fair-ish, considering he showed a few clients how to avoid paying taxes himself) and told to piss off by the Internal Revenue Service, from whom he sought an award, because he was "not forthcoming about his own role in the scheme," even as a Justice Department attorney admitted that "...without Mr. Birkenfeld walking into the door of the Department of Justice in the summer of 2007, I doubt as of today that this massive fraud would have been discovered by the US government" (or as his lawyer put it, "They didn't know how to spell UBS until he showed up. He didn't just give them a piece of the puzzle. He gave them the entire puzzle"). Now, after doing 32 months at Schuylkill Federal Correctional Institution, getting let out early on account of "good-time credit," and living in a halfway house in New Hampshire, Birkenfeld has finally been thrown a bone. Bradley Birkenfeld, the former UBS AG banker who told the Internal Revenue Service how the bank helped thousands of Americans evade taxes, secured an IRS award of $104 million, an amount his lawyers said may be the largest ever for a U.S. whistle-blower. Birkenfeld told authorities how UBS bankers came to the U.S. to woo rich Americans, managed $20 billion of their assets, and helped them cheat the IRS. He pleaded guilty to conspiracy in 2008, a year after reporting the bank’s conduct to the Justice Department, U.S. Senate, IRS and Securities and Exchange Commission. He was released from prison Aug. 1...Birkenfeld, 47, worked at Zurich-based UBS, the largest Swiss bank, for five years. He sought a reward from the IRS of as much as 30 percent of any taxes the agency recovered as a result of his whistle-blowing activities. Clearly this whole thing should stir up a few questions inside you all, chief among them: how much money would it take to get you to befriend or get yourself employed with some rogue people so you can blow the whistle on them? Would you do any time for it? If so, how much? And are we talking Club Fed or a place where your roommate spoons you every night? UBS Whistle-Blower Secures $104 Million Award From IRS [Bloomberg]