The SEC charged a former managing director/fixed-income analyst (the "analyst") at a broker-dealer with aiding and abetting a pay-to-play scheme involving the New York State Common Retirement Fund (the "Fund").
According to the Complaint, the Fund's Director of Fixed Income (the "director") received improper benefits in the form of entertainment and other gifts from the analyst and from a registered representative at the broker-dealer. In return, the director allegedly funneled millions of dollars in business to the broker-dealer.
The SEC alleged that the analyst requested reimbursement of expenses related to entertaining the director and his girlfriend, and also submitted inaccurate expense reports. The SEC further claimed that the analyst and the registered representative conspired to lie after the broker-dealer discovered discrepancies in the expense reports.
The SEC previously filed charges against the director, the registered representative and another alleged participant in the pay-to-play scheme.
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