“Pension fund contracts cannot be obtained on the basis of illicit political contributions and improper payoffs,” said Andrew J. Ceresney, Director of the SEC’s Enforcement Division, in a written statement. “DeBaggis corruptly influenced the steering of pension fund custody contracts to State Street through bribes and campaign donations.”
The bank agreed to the $12 million fine without admitting or denying the SEC’s findings.
Federal authorities began investigating State Street Bank and Ahmad after the Dayton Daily News published stories in May 2010 that called into question why the bank hired M. Noure Alo, an immigration attorney with no banking law or lobbying experience, as its Ohio lobbyist. Alo was close friends with Ahmad and Alo’s wife served as Ahmad’s secretary.
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