Two New York Life Insurance Co. employees
accepted more than $485,000 in secret cash kickbacks to cheat their
company out of the best prices for securities trades, prosecutors
alleged in criminal indictments unsealed Thursday.
One of the men Anthony Dong-Yin Shen pleaded guilty in
federal court in Manhattan Thursday in a plea deal that may require
him to testify against others about the scheme that lasted from
1997 to 1999.
"I sincerely regret my actions," he told U.S. District Judge
Harold Baer Jr. "I understand that what I was doing was wrong and
Shen, 26, of Manhattan and Srinivas Anumolu, 37, of Sunnyvale,
Calif., were accused in the indictment and in a lawsuit brought by
the Securities and Exchange Commission of accepting $465,000 in
cash and $18,500 in gifts to cheat their company out of the best
prices for securities trades.
Shen was a senior associate and Anumolu was a portfolio manager
at New York Life.
According to court papers, Shen received $6,400 in tickets to
the 1998 NBA All-Star game, a DVD player, a $14,000 trip to the
Bahamas and "adult entertainment" among his kickbacks.
Anumolu made an initial appearance in U.S. District Court in San
Jose, Calif., where he was told to retain his own lawyer because
his assets made him ineligible for the court to appoint a lawyer at
the public's expense.
Magistrate Judge Patricia Trumbull ordered Anumolu, who is not a
U.S. citizen, held pending a detention hearing Tuesday.
A message for comment left at Anumolu's residence was not
Also charged with securities fraud in the case were Ronald W.
Pinto, formerly of Nomura Securities International in New York, and
Deborah Breckenridge, formerly of Suncoast Capital Group in Fort
Lawyers for both did not immediately return telephone messages
Pinto, 41, of Demarest, N.J., and Breckenridge, 45, of Old Town,
Fla., both sales people, were accused of paying Shen and Anumolu
the bribes to funnel business their way so that they could earn
Pinto, who allegedly made $3 million in commissions from trades
with New York Life, and Breckenridge, who allegedly made $700,000
for her trades, were expected surrender for court appearances next
If convicted, Pinto, Breckenridge and Anumolu could face up to
10 years in prison and $1 million in fines.
Shen could face up to five years in prison when he is sentenced
at a date to be set later.