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Former Fund Manager and Two Broker-Dealers Charged in New York Pay-For-Play Scheme
A former portfolio manager at the New York State Common Retirement Fund and two broker-dealers have been charged in a "pay-for-play" scheme involving the Fund, according to a press conference held at the U.S. Attorney’s Office in New York.
Navnoor Kang, a former portfolio manager at the New York State Common Retirement Fund, and two broker-dealers, Deborah Kelley and Gregg Schonhorn, have been charged with participating in a scheme that involved paying millions of dollars in kickbacks to obtain investment management business from the Fund, according to the charging documents attached to the press release.
The charges were announced during a press conference held by Preet Bharara, United States Attorney for the Southern District of New York, William F. Sweeney, Special Agent-in-Charge of the New York Field Office of the Federal Bureau of Investigation, and Andrew Ceresney, Director of the Division of Enforcement for the Securities and Exchange Commission.
"Today’s charges demonstrate our continued commitment to rooting out public corruption and financial crimes," said Preet Bharara, United States Attorney for the Southern District of New York. "The charges against Navnoor Kang, Deborah Kelley, and Gregg Schonhorn are a reminder that those who abuse their positions of trust for personal gain will be held accountable."
The event was livestreamed via Facebook at www.facebook.com/usaosdny.
Navnoor Kang, Deborah Kelley, and Gregg Schonhorn are expected to appear in court at a later date to answer the charges.
The investigation was conducted by the Federal Bureau of Investigation and the Securities and Exchange Commission.
Please silence all cell phones, PDAs, and pagers before the start of the press conference.
Contact James Margolin, Dawn Dearden, or Nicholas Biase at (212) 637-2600 with any questions.
Follow the U.S. Attorney’s Office on Twitter at @SDNYnews.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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