Feds: Pension exec moved $2B for coke, hookers, other bribes

[Eugene]

Source: Associated Press

Feds: Pension exec moved $2B for coke, hookers, other bribes

Federal authorities allege that a former official at the pension fund for New York state public employees took bribes that included prostitutes, strippers, cocaine and a $17,000 wristwatch

Dec. 21, 2016, at 4:33 p.m.

By JAKE PEARSON, Associated Press

NEW YORK (AP) — A former top official at the country's third-largest pension fund and two broker-dealers were charged Wednesday in what a federal prosecutor described as a classic bribery scheme that steered $2 billion in trades in exchange for drugs, prostitutes, vacations and U.S. Open tennis tickets.

"The hard-earned pension savings of New Yorkers should never serve as a vehicle for corrupt, personal enrichment," Manhattan U.S. Attorney Preet Bharara said in a statement, calling the alleged pay-for-play arrangement a "classic, quid-pro-quo bribery scheme."

Navnoor Kang, the ex-head of the $184 billion New York State Common Retirement Fund's fixed income trades, received more than $100,000 worth of bribes in the form of trips, gifts, luxury hotel stays and other payoffs from broker-dealers Deborah Kelley and Gregg Schonhorn, prosecutors said.

Kang, 38, was arrested in Portland, Oregon, on securities fraud, honest service wire fraud, conspiracy and obstruction of justice charges.

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Read more: http://www.usnews.com/news/business/articles/2016-12-21/feds-pension-exec-moved-2b-for-coke-hookers-other-bribes

[Angry Dragon]

1. good job if you can get it

[DK504]

2. Let me guess

he'll pay a teeny tiny fine and see no jail time.

[brush]

3. Damn, he came cheap. A billion dollar pension fund and they bought him for a mere 100k

Lock his ass up for being a crook, and a stupid, easily had one at that.

[nitpicker]

4. Link to the DoJ PR

https://www.justice.gov/usao-sdny/pr/former-portfolio-manager-new-york-state-common-retirement-fund-charged-pay-play-bribery

[nitpicker]

5. From Reuters

http://www.reuters.com/article/us-new-york-corruption-pensionfund-idUSKBN14A1M3

(snip)
In the latest case, Navnoor Kang, the former director of fixed income at the New York State Common Retirement Fund, was charged in federal court in Manhattan along with Deborah Kelley, a former Sterne Agee Group Inc managing director.

Both face charges that include securities fraud and wire fraud and were also sued by the U.S. Securities and Exchange Commission in a related civil lawsuit.

Kang was arrested on Wednesday morning at his home in Portland, Oregon. Kelley surrendered to authorities in San Francisco, prosecutors said.

Gregg Schonhorn, a broker-dealer at FTN Financial Securities Corp, secretly pleaded guilty to paying bribes on Dec. 15, authorities said. FTN fired him on Wednesday when the firm learned of the allegations, a spokeswoman said.
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