On 29 September, SDNY charged dealer with NY public pension fund bribery.
- Deborah Kelley, was ex-MD of institutional fixed income sales at a broker dealer.
- Kelley participated in scheme involving the NY State Common Retirement Fund.
- Bribed official with control over investment of $50bn State pension fund assets.
- Directing business to her firm, and making thousands of dollars in commissions.
- Pension fund administered for the benefit of public employees of the State of NY.
- 2014-16, Navnoor Kang was responsible for fixed income investment at NYSCRF.
- Kang, Kelley, others participated in a scheme, to defraud NYSCRF and members.
- Bribes to Kang included entertainment, travel, and lavish meals, and other items.
- In exchange Kang used position to promote interests of Kelley and her brokerage.
- NYSCRF domestic bond transactions with B/D went from zero to $156mn in year.
- Kang’s trades resulted in $0.5mn commissions, Kelley herself earned over $200k.
Obstruction of Justice
- 2015, SEC opened investigation into entertainment and benefits provided to Kang.
- Kelley and Kang were subpoenaed, agreed to align stories and give false testimony.
- Defendants each falsely testified under oath, on expenses Kelley had paid to Kang.
- Kelley fined $50k, to forfeit $187k, and complete 1000 hours of community service.
- Sentenced in Manhattan federal court to three years’ probation, including 6 months
of home confinement, for participating in the bribery scheme involving the NYSCRF.
- Kang charge re conspiracy, securities fraud, honest services wire fraud, obstruction
of justice are currently pending, presumed innocent unless and until proven guilty.
- Kang trial scheduled December 4, 2017, restitution decided within 90 days of sentencing.
- December 2016, Gregg Schonhorn, VP at another NY B/D, pled guilty for also taking part