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State Street Pay-to-Play Lawsuit

A SEC investigation found that a senior vice president at State Street made “illicit cash payments and political campaign contributions” to Ohio’s formal deputy treasurer in exchange for three contracts to safeguard the Ohio State pension funds’ investments and handle the settlement of their securities transactions. State Street will pay $12 million to settle such charges, and the State Street senior vice president will pay $274,000. A law firm partner working as a fundraiser and lobbyist for State Street was involved, entering into “undisclosed arrangements” with the former deputy treasurer to make the “illegal campaign contributions” in order to obtain the contract business. State Street has reportedly eliminated the hiring of consultants and lobbyists for asset servicing dealings with U.S. retirement plans.

www.ai-cio.com; January 14, 2016.