The co-head of corporate bond trading at Advest Securities in New York has left his post in the wake of the arrest of a former colleague on an array of federal charges including conspiracy to commit commercial bribery.
Robert Procida, known as "Bobby Pro," will join BB&T Capital Markets in Richmond, Va. He was asked to resign from Advest, said Sam Stoakley, managing director and head of trading at BB&T. "We're aware there was an incident that led to his resigning from Advest. We know he was out of a job and available," he said, declining further comment.
The resignation appears to be connected to the case of Richard Wetter, a former v.p. in high-grade sales at Advest who later joined Cantor Fitzgerald. Wetter was arrested by federal agents this summer for allegedly marking up prices on illiquid bonds and kicking back millions of dollars in rebates to a co-conspirator, according to an official in the U.S. Attorney's Office for the Southern District of New York, which is prosecuting the case. Wetter is charged with conspiracy to commit securities fraud, bank fraud and commercial bribery and one count each of securities fraud and bank fraud, according to the official.
A handful of contacts told BW they believed Procida was not just aware of the trades that led to Wetter's indictment but also may have facilitated them. Procida's role, if any, could not be confirmed. If indeed bonds were artificially marked up, it is possible Advest might have asked Procida to resign because the trades went through his blotter.
Procida did not respond to messages left with Stoakley and Vicky Held, v.p. at BB&T, who said they would reach him. Wetter could not be reached by press time.
Steve Ciccarello, director of risk management and acting head of taxable fixed income at Advest, confirmed Procida's resignation but declined comment on the circumstances surrounding his departure or on Wetter. "The firm cannot comment on pending legal matters," said Susan Bailey, spokeswoman for Advest, when asked whether Procida and Advest are also being investigated by the FBI.
A Cantor official confirmed Wetter was arrested while he was a Cantor employee for activities conducted while he was at Advest. She said he subsequently resigned from Cantor. Kim Henneforth, spokeswoman at Cantor, declined comment.
Rick Musumeci is now sole head of corporate bond trading at Advest. He declined comment.
