CHARLESTON, WV (WOWK) — West Virginia Attorney General Patrick Morrisey announced the West Virginia University Foundation and a Parkersburg hospital will receive more than $600,000 to resolve claims related to prior investments that involved global financial firm UBS.
The attorney general says the funding is part of a larger $68 million, 40-state settlement with UBS to resolve allegations of fraudulent conduct involving manipulation of LIBOR rates, a benchmark interest rate that affects financial instruments worth trillions of dollars and has a far-reaching impact on global markets and consumers.
“Word of more than $600,000 for these entities comes as welcome news as organizations far and wide cope with the COVID-19 pandemic,” Morrisey says. “Honesty is paramount when investing. Fraud and manipulation of rates and markets cannot be tolerated by any bank or institution.”
According to Morrisey, the WVU Foundation, which solicits and administers private support on behalf of the university, will receive $432,115 from the settlement and WVU Medicine Camden Clark Memorial Hospital in Parkersburg will also receive $177,292.
The WVU Foundation and Camden Clark were eligible since both entities had LIBOR-linked swaps and other financial instruments with UBS. Funds will be distributed at a later date, according to the attorney general’s office. In accordance with the settlement agreement which was finalized in December 2018, UBS has cooperated with the states to help facilitate civil enforcement efforts, including the distribution of funds to victims and the claims process has continued ever since, Morrisey says.
The attorney general alleged UBS misrepresented the integrity of the LIBOR benchmark by concealing, misrepresenting and failing to disclose that UBS at times made LIBOR submissions to avoid negative publicity, protect the reputation of the bank and benefit its derivative trading positions. Morrisey says the alleged conduct led to UBS making millions in unjust gains when government entities and not-for-profit organizations entered into swaps and other financial instruments with UBS without knowing that UBS and other LIBOR-setting banks were manipulating their LIBOR submissions.