David Aufhauser, general counsel for the Swiss firm's investment-banking arm, is the individual described in Mr. Cuomo's case against UBS as "Executive A," according to people familiar with the matter.
The complaint, filed last week in New York City, alleges that he and six other UBS executives sold $21 million of their personal holdings in auction-rate securities in the months leading up to the market's collapse, based on unique inside knowledge of the problems in the market.
One email from a UBS chief risk officer, circulated among members of a UBS "working group" charged with assessing problems in the market, outlined an increasingly dire situation for the market.
"Watch our competitors closely; if they stop supporting auctions, we have much better freedom to stop [supporting auctions]," the email said, according to the complaint.
'I WANT TO GET OUT ... '
Emails from UBS executives on auction-rate securities:
• Email from UBS risk officer, Dec. 14, 3:38 p.m.: "...watch our competitors closely; if they stop supporting auctions, we have much better freedom to stop ...''
• Email from UBS investment-bank general counsel David Aufhauser to his financial adviser, Dec. 14, 6:29 p.m.: "I want to get out of arcs. Let's talk on Monday."
Source: New York Attorney General
Executive A (or Mr. Aufhauser) was among the recipients of the email, the complaint says. That evening, it says, Executive A wrote to his personal financial adviser, saying, "I want to get out of arcs. Let's talk on Monday."
He sold $250,000 of the securities, his entire holding, between Dec. 18 and Dec. 21.
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