The Fund is under the aegis of the NYS Comptroller, Thomas P. DiNapoli, who had no comment for the time being.
Allegedly the brokers got $2 billion worth of funds to manage in return for "at least" $180,000 worth of sex, drugs and rock-and-roll (including tickets to a Paul McCartney concert) demanded by the fixed-income director.
This case finds itself at the intersection of public corruption and securities fraud. Unfortunately, this appears to be a busy intersection.The charges were filed in federal court in Manhattan. Here is the story in Crain's.