Inner City Press





In Other Media-eg New Statesman, AJE, FP, Georgia, NYTAzerbaijan, CSM Click here to contact us     .



These reports are usually available through Google News and on Lexis-Nexis
,



Share |   

Follow on TWITTER

Home -

These reports are usually available through Google News and on Lexis-Nexis

CONTRIBUTE

(FP Twitterati 100, 2013)

ICP on YouTube

More: InnerCityPro

BloggingHeads.tv
Sept 24, 2013

UN: Sri Lanka

VoA: NYCLU

FOIA Finds  

Google, Asked at UN About Censorship, Moved to Censor the Questioner, Sources Say, Blaming UN - Update - Editorial

Support this work by buying this book

Click on cover for secure site orders

also includes "Toxic Credit in the Global Inner City"
 

 

 


Community
Reinvestment

Bank Beat

Freedom of Information
 

How to Contact Us



SEC Virtual Bench Trial Against Paulsen Day 2 Has Kang Not Getting Context and Cross Exam

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SDNY COURTHOUSE, July 16 – On Valentine's Day weekend in 2015, the Securities and Exchange Commission alleges, John A. Paulsen took part in bribing Navnoor S. Kang of the New York State Common Retirement Fund to steer business to Paulsen's then-firm Sterne Agee. The bribe include a skiing trip to Park City, Utah.  

On July 15, 2020 a bench trial began in the case, before U.S. District Court for the Southern District of New York Judge Paul G. Gardephe. Inner City Press is covering it. The SEC's opening statement quoted Paulsen's messages to co-workers about concealing the trip and which client was on it.  

  Judge Gardephe indicated he will need more from the parties on the applicable (scienter) legal standard the SEC much meet.

 Paulsen's lawyer painted a different picture, and before the 45 minute lunch break undertook two cross-examinations of SEC witnesses who had filed declarations as their direct testimony.

He was also able, after a time, to have defense exhibits appear on the screens before the parties. So it it goes during the Coronavirus pandemic.

 On Day 2 of the trial, there was talk at the beginning and end and in between about a "fluttering" sounds, "like a mechanical bird." In between, Inner City Press tweeted including:

It's the next day in SEC v. Paulsen trial, and former NYSCRF Kang is being questioned.

He says, Why are you asking me about the Paul McCartney concert in New Orleans? I thought this was about Paulsen and Park City. Can you give me some context? Judge Gardephe:

Re-cross of Kang by Paulsen's lawyer:

Q: Were you ever told the Park City ski trip was planned for a number of client?

Kang: Ms Kelley had it booked, more than 2 rooms. She was planning it with my girlfriend of the time, Shireen... 

Q: Was it a month in advance?

 Kang: I don't know when the rooms were booked. Q: But you knew it was a couples' trip?

Kang: Yeah. Me and my girlfriend, Ms Kelley and her husband.

Q: But then you saw Mr. Paulsen was there.

Kang: Yes, it was a surprise that he was there.

 Now defendant Paulsen is on the "stand" being grilled by the SEC.

 Q: As of Feb 19, you knew not to put Kang's name on the expense report? Paulsen: Right. Q: Why did you lie to the lawyers in the internal investigation? Paulsen: I didn't think it was a big deal.

Paulsen: Obviously, that was a mistake. Judge Gardephe: It wasn't a big deal?

Paulsen: I was called by the chief counsel of Sterne Agee, he said it was about the ski trip, it seemed to be only about expense reporting. So I called Ms Kelley...

Judge Gardephe: It didn't occur to you this had something to do with Kang not being allowed to accept any gift?

Paulsen: It didn't fully occur to me. 

SEC: You threw your lot in with Ms Kelley, and lied?

Paulsen: She was concerned about Mr Kang.

 Paulsen: Ms Kelley told me, I was surprised, 'Here's what I told the investigators, it would be good if you followed my lead.' We decided to align our stories

  Is that enough to sustain a verdict for the SEC?

Inner City Press will continue to follow this trial.

 The case is SEC v. Paulsen, 18-cv-6718 (Gardephe)

***

Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.

Feedback: Editorial [at] innercitypress.com
SDNY Press Room 480, front cubicle
500 Pearl Street, NY NY 10007 USA

Mail: Box 20047, Dag Hammarskjold Station NY NY 10017

Reporter's mobile (and weekends): 718-716-3540



Other, earlier Inner City Press are listed here, and some are available in the ProQuest service, and now on Lexis-Nexis.

 Copyright 2006-2020 Inner City Press, Inc. To request reprint or other permission, e-contact Editorial [at] innercitypress.com for