State Street Charged With Pay-to-play Scheme With Ohio Pension Funds

State Street is paying $12 million to settle charges from the Securities and Exchange Commission that it conducted a pay-to-play scheme through its then-senior vice president and a hired lobbyist to win contracts to service Ohio pension funds. The SEC alleges that Vincent DeBaggis, who headed State Street's public funds group, entered into an agreement with Ohio's then deputy treasurer to make illicit cash payments and political contributions. DeBaggis agreed to settle the SEC's charges by paying $174,202.81 in disgorgement and prejudgment interest and a $100,000 penalty, the SEC said. State Street and DeBaggis didn't admit or deny the finding. The SEC also is suing Robert Crowe, a law firm partner who worked as a fundraiser and lobbyist for State Street. Ohio's then-deputy treasurer, Amer Ahmad, and Mohamed Noure Alo, who allegedly funneled money to Ahmad from State Street, have been criminally convicted for other misconduct and are currently in federal prison, the SEC said.