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US Attorney charges former New York State pension fund portfolio manager in bribery scandal

Posted by Karen DeWitt on

US Attorney Preet Bharara is bringing charges against a former portfolio manager in the state’s pension fund, saying he accepted bribes from two hedge fund brokers, that included prostitutes and illegal drugs.

The State Comptroller Tom DiNapoli, who is not implicated in the case, says in a statement that he’s “outraged” by the “shocking betrayal” of the former portfolio manager, Navnoor Kang, who was fired in February. And DiNapoli thanked the US Attorney for bringing the charges.

But Governor Cuomo, a longtime political rival of the Comptroller, says it raises questions about the State Comptroller’s role as sole trustee of one of the largest pension funds in the nation.

Cuomo says hedge fund managers are eager for a share of the lucrative fund.

“The temptation for corruption, and bribery and bid rigging is very, very high,” Cuomo said. “Given the system we have.”

Cuomo compared the case to his successful prosecution of a former state Comptroller, when Cuomo was state Attorney General. Alan Hevesi served jail time for corruption.

In response to the governor’s comments, a spokeswoman for the Comptroller says the crimes were the work of a “rogue employee”, and that pension fund boards have also had scandals.  

Governor Cuomo’s Administration is also facing its own scandal from a federal probe. The governor’s former top aide, a lobbyist close to the Cuomo family, the former head of SUNY Polytechnic, and several others have been charged with or pleaded guilty to bribery and bid rigging in connection with an economic development contract scandal that includes Buffalo Billion projects.  

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