In a complaint filed with a Manhattan court, the regulator charges Julio Ramirez, who was formerly affiliated with LA-based broker-dealers DAV/Wetherly Financial and the Park Hill Group, with helping another defendant to secure kickback payments from Aldus Equity Partners in return for investment business from the New York State Common Retirement Fund.
The SEC contests that although Aldus was already negotiating with the retirement fund to handle proposed investments, Mr Ramirez helped Henry Morris to secure the company's agreement that it would kick back 35 per cent of its management fees to a shell company run by Mr Morris.
In return, Aldus secured the fund's emerging portfolio business and Mr Ramirez received a portion of the kickback fees, even though he performed "no legitimate services".
The SEC has previously charged Mr Morris and David Loglisci with orchestrating the fraudulent scheme. It has also charged ex-hedge fund manager Barrett Wissman and the former leader of the New York Liberal Party Raymond Harding with arranging and receiving fees under the scam.