Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Two Former Brokers Barred for Their Alleged Roles in Pension Fund Scandal, Top Official Navnoor Kang Charged With Fraud

Former brokers Deborah Kelley and Gregg Z. Schonhorn were recently charged by the SEC and barred for their alleged roles in a "pay-to-play" pension fund scandal involving the NY State Common Retirement Fund that brought millions in trading commissions to the representatives. Navnoor Kang, a former top official of the nation's third-largest pension fund, also faces charges.

Former broker Gregg Z. Schonhorn worked for FTN Securities through December of 2016. When FTN learned that he had pleaded guilty to charges of fraud in connection with his role in the "pay-to-play" arrangement involving NYSCRF pension fund, Schonhorn resigned.

Former Broker Deborah Kelley was employed by Seaport Global Securities until March of 2017 when FINRA barred her from working in the securities industry. She was charged with and pled guilty to conspiracy to commit securities fraud.

According to the SEC, Navnoor Kang was hired by NYSCRF in 2014 and given investment responsibility for approximately $50 billion in fund assets. He allegedly began immediately soliciting and receiving valuable items from Schonhorn to divert billions of dollars in fixed-income trades to firms represented by Schonhorn and Kelley. Over the course of his two-year employment, he received $160,000 or more in expensive trips, dinners, gifts, cocaine and services of prostitutes to steer a significant portion of the fund's trading volume to Schonhorn.

By April 2015, Schonhorn had executed approximately $1.5 billion in fixed-income trades, and by the end of March 2016, that number had grown to about $2.38 billion. The scheme resulted in sizeable payouts to Schonhorn, with him sometimes wracking in hundreds of thousands of dollars per month in commissions.

Kelley allegedly executed approximately $1 billion in fixed-income trades on behalf of the fund, also bringing in sizeable commissions as she allegedly made gifts of about $20,000 in concert tickets, meals, and hotel stays to Kang.

Manhattan U.S. Attorney Preet Bharara reportedly said in a statement that,

"The hard-earned pension savings of New Yorkers should never serve as a vehicle for corrupt, personal enrichment."

If you suspect that your investments have been affected by fraud, call the investment fraud attorneys at Meyer Wilson at (614) 532-4576 to discuss your legal options.

Related Posts:

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram