NEW YORK | Dismay Today over Pay to Play

Both Federal SEC officials and NY state prosecutor Preet Bharara have charged two brokers and the former director of fixed income at the NYS Common Retirement Fund with a pay-to-play arrangement.

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.

Bharara said:

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.