Two former investment bankers at Bear Stearns have pled guilty to mail and wire fraud in federal court in El Paso, Tex., according to a weekend media report.
Their pleas come as part of a federal corruption investigation in Texas that has implicated municipal bond underwriters, according to report, published in the The Wall Street Journal. The investigation already has yielded other guilty pleas from local elected officials in El Paso.
The two former Bear Stearns executives are Roberto Ruiz, who was a managing director at the company's Dallas office, and Christopher Pak, a former vice president at that office.
Federal officials have been conducting a broader nationwide investigation into bid-rigging in the municipal bond industry, the Journal report noted. However, the report added that it's unclear how the latest pleas in the El Paso case are related to other parts of the nationwide probe.Bear Stearns shares ended Friday down $1.47 at $89.95.