Nathan Chapman Jr., a former money manager who ran assets for the $30.1 billion Maryland State Retirement & Pension System, Baltimore, was found guilty today by a federal court jury on 23 of 36 counts of fraud, confirmed Vicki Leduc, spokeswoman for the U.S. Attorney's office. He will be sentenced in U.S. District Court in Baltimore on Nov. 1.
"The defendant in this case abused the trust that was placed in him by the state pension fund, investors and his employees," said Thomas DiBiagio, U.S. attorney. "This investigation and prosecution and today's verdict reaffirm the single principle that has guided this office since its inception - justice without fear or favor."
Carol Boykin, who was CIO of the pension fund while Mr. Chapman managed plan assets and is now a managing director at consultant Bolton Partners, said: "The Chapman portfolio was contractually held to ERISA, and I think this decision reinforces the importance of the high standards of ERISA - to act solely in the best interest of the plan participants and beneficiaries."
Joe Coale, system spokesman, said, "I believe all are pleased this proceeding is over, with the exception of the sentencing phase. As other actions are pending in related matters, it would be inappropriate to comment further."
