GRIM NEWS: Former Managing Director Deborah Kelley Pled guilty in a Pay-To-Play Bribery Scandal
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, has announced that Deborah Kelley, a former managing director at a New York-based broker-dealer, has pleaded guilty to participating in a ‘pay-to-play’ bribery scheme that involved the New York State Common Retirement Fund (NYSCRF), the nation’s third largest public pension fund.
In a statement, Kim said: ‘As she admitted today, Deborah Kelley bribed Navnoor Kang to steer state pension business to her brokerage firm, reaping hundreds of thousands of dollars in additional commissions. Her actions are a betrayal to New York pensioners whose hard-earned retirement savings were used as leverage for corruption.’
The scheme, which lasted from 2014 to 2016, involved Kang using his position at the NYSCRF to direct fixed-income business to Kelley’s brokerage firm in exchange for bribes. These bribes included entertainment, travel, and lavish meals, all paid secretly and without disclosure to the NYSCRF or its members.
According to the Indictment, the value of the NYSCRF’s domestic bond transactions with the Broker-Dealer increased significantly due to Kang’s actions, resulting in hundreds of thousands of dollars in commissions. Kelley personally earned approximately 35 to 40 percent of these commissions.
In late 2015, the Securities and Exchange Commission (SEC) opened an investigation into the matter, leading to the subpoenaing of both Kelley and Kang for testimony. Obstruction of justice charges may follow as the investigation continues.
This case underscores the need for vigilance in protecting public pension funds from corruption. The guilty plea of Deborah Kelley is a stark reminder that those who abuse their power for personal gain will be held accountable.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Public Corruption|Fraud & Financial Crimes
- Source: Official Source ↗
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