A former Nomura Securities International salesman has pleaded guilty to participating in a kick-back scam in connection with trades executed at the behest of former employees on behalf of New York Life Insurance. New York Life is believed to have lost about $4m as a result of the scam.
Ronald Pinto, 42, now faces a possible jail sentence of up to 10 years and a $1m fine for his role in the scheme between 1997 and 2000.
Pinto is charged with participating with Srinivas Anumolu, a former portfolio manager at New York Life and Anthony Dong-Yin Shen, a former bond trader with the same company, in a scheme which alleges that the two New York Life employees took kick-backs in return for directing transactions to Pinto and other brokers, who earned substantial commission on the trades.
It is alleged that Pinto paid over $200,000 to Shen and Anumolu over a three year period.
The men are thought to have concealed the scheme from their employers by executing the trades at prices they would not find suspicious.