On July 26, 2018, the Securities and Exchange Commission (SEC) filed a complaint against John Paulsen in the District Court for the Southern District of New York. John Pualsen is a former analyst at a registered broker-dealer headquartered in Alabama. It is alleged that John Paulsen aided and abetted a pay-to-play scheme involving the New York State Common Retirement Fund.
Navnoor Kang, a manager of $50 billion at the Fund, used his position and influence to solicit improper benefits from John Paulsen and his colleague, Deborah Kelley, in exchange for placing trades at John Paulsen’s broker-dealer, which generated commissions for Paulsen. Kang allegedly received thousands of dollars in benefits from John Paulsen and Deborah Kelley, including ski trips and hotel rooms. Paulsen and Kelley sought reimbursement for those expenses from their employing brokerage firm. When inconsistencies were discovered, the broker-dealer launched an internal investigation. The SEC has already charged Kang and Kelley with participating in this pay-to-play scheme.
For a cull copy of the SEC complaint, click https://www.sec.gov/litigation/complaints/2018/comp24218.pdf.
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Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. Simply put, he knows how the other side evaluates cases, which gives you a competitive advantage.