Bribes + NY State Pension Fund Equals Millions In Profits For Financial Companies
Two financial firms raked in billions of dollars of business from the New York State Common Retirement Fund, the $184-billion retirement fund serving many state employees, after their agents bribed one of the pension fund's employees with cash, watches, travel, bottle-service, cocaine, strippers, prostitutes, and Paul McCartney tickets, according to indictments announced today by Preet Bharara, United States Attorney for the Southern District of New York.
The two indictments announced today only cover three people: Navnoor Kang, 38, the director of fixed income and security for the $185 billion New York State Common Retirement Fund; Gregg Schonhorn, 45, the vice president of fixed income sales at FTN Financial Corp; and Deborah Kelley, 58, at the time the managing director of institutional fixed income sales at Sterne Agee. Kang, who worked for the fund, was considered a public officer under the law.
In exchange for plying Kang with drugs, women, jewelry and vacations, the indictments allege, Kang directed more than $2 billion in business to FTN Financial and Sterne Agee. Initially, Kang did this through front companies, since FTN Financial and Sterne Agee were not approved brokers for the fund. Since both the front brokers and the actual brokers took commissions, the fund got soaked.
Later, in 2014, as the agents of FTN Financial and Sterne Agee continued to bribe him, Kang added the companies to the list of approved brokers, allowing them to do business with the fund directly.
Read more: http://www.villagevoice.com/news/bribes-ny-state-pension-fund-millions-in-profits-for-financial-companies-9485981