Forbes Magazine reports that a former Nomura Securities International salesman has been sentenced to 21 months in prison for his part in a kick-back scheme that eventually cost New York Life Insurance around $4m.
Ronald Pinto, 42, pleaded guilty in May to one count of securities fraud for his part in the scheme which ran from 1997 to August 2000.
The ex-Nomura man admitted participating with Srinivas Anumolu, a former portfolio manager at New York Life and Anthony Dong-Yin Shen, a former bond trader at the same company, in a scheme whereby the two New York Life employees took kick-backs in return for directing transactions to Pinto and other brokers, who themselves earned substantial commission on the trades.
Pinto is believed to have paid out over $200,000 in three years. Shen and Anumolu have both admitted wrongdoing.
The scam only worked as the participants executed the trades at prices that their employers would not find suspicious. New York Life are thought to have eventually taken a $4m on the shares purchased as a result of the scam.