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[Randolph Freelander]

http://www.usnews.com/news/business...n-exec-moved-2b-for-coke-hookers-other-bribes

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


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.

...

Regulators found that Kang steered about $2 billion in fixed-income trades to firms represented by Kelley and Schonhorn beginning in early 2014, resulting in millions of dollars in commissions, of which the two earned between 35 and 40 percent, according to an indictment.

In that time, securities investigators found that the firms' fixed-income business surged, with one of them increasing its domestic bond transactions from zero at the end of fiscal year 2013 to $2.378 billion at the end of fiscal year 2016, making it one of the top broker dealers doing state pension fund business, according to the complaint.

Prosecutors said that in exchange, Kang received a $10,000 all-expenses-paid trip to Montreal, Canada; a ski trip to Park City, Utah; tickets to a Paul McCartney concert in New Orleans; a $17,420 Panerai wristwatch; dinners at upscale restaurants; nights out at strip clubs; prostitutes; and cocaine.

NY people, protect your assets.

 

[Opto]

They should run for president

 

[SlimySnake]

Prosecutors said that in exchange, Kang received a $10,000 all-expenses-paid trip to Montreal, Canada; a ski trip to Park City, Utah; tickets to a Paul McCartney concert in New Orleans; a $17,420 Panerai wristwatch; dinners at upscale restaurants; nights out at strip clubs; prostitutes; and cocaine.

Hollywood exec: "This sounds like the perfect Christmas movie! Where is DiCaprio?"

 

[Randolph Freelander]

NY people, demand more.

Kang had been fired in 2012 by a private investment firm for accepting gifts from Schonhorn in exchange for steering fixed-income business, but he lied about his termination when he was hired by the state fund, according to the complaint

 

[Sulik2]

100k isn't that much for shifting $2 billion. Dude was a cheap bribe. Just shows how dumb he was.

 

[Matsukaze]

What's his Cabinet position going to be?

 

[Randolph Freelander]

What's his Cabinet position going to be?

Probably just head the DEA.

 

[DontBeThatGuy]

They should run for president

Or at least help fill out the cabinet.

 

[entremet]

Classic NY corruption lol.

 

[B-Dubs]

Someone needs to fix the neogaf.gif so it reads "Albany."

 

[Acorn]

He took the spend it on hookers and blow joke too literal.

 

[Opto]

Or at least help fill out the cabinet.

ooo, maybe Social Security Administration Commissioner

 

[ezrarh]

Park City Utah for skiing? He was a cheap bribe - they even didn't bother to send him to Colorado for superior skiing.

 

[Mammoth Jones]

Corruption in NY politics....say it ain't so...

 

[Stinkles]

Which Panerai watch? Those are worth going to jail for.

 

[see5harp]

I guess it could have been worse and the firms he gave money to could have lost money. It seems as though many CEO's of pension funds end up getting arrested. The CEO of CalPERS from about 10 years back named Fred Buenostro basically got arrested for doing a similar thing. He basically struck a deal with the prescription service Medco which, in turn, probably made Medco hundreds of millions of dollars since CalPERS is the retirement fund for the majority of retired and active state employees in CA.

EDIT: http://www.sfgate.com/business/bott...CEO-Fred-Buenrostro-pleads-guilty-5616331.php

he was basically doing the same sorts of things.

 

[Akuun]

You know, schmoozing someone by showing up with a truckload of hookers and blow is supposed to be a joke. You're not supposed to actually do that.