Become a digitalPLUS subscriber. 99¢ for 4 weeks.
News Maryland

The money trail

July 1995
Maryland pension system decides to use more minority money managers.

Fall 1996
Nathan A. Chapman Jr. buys Minority Equity Trust, a fund invested in by a collection of minority-owned firms. One MET client is state pension system.

December 1996
Chapman, as new MET owner, signs contract with pension system to manage some of its money.

January 1997
Chapman signs contract with Alan B. Bond making Bond a manager in MET. Gives Bond $10 million in pension money to invest.

January 1998
Chapman gets additional $40 million in pension money; gives $5 million of that to Bond to invest.

February 1998
Bond uses $560,000 in pension money to buy 70,000 shares in a Chapman company, Chapman Holdings Inc.

July 1998 -- February 1999
Chapman gives Bond $8 million in pension money to invest.

Dec. 16, 1999
Bond indicted in New York on charges of defrauding pension systems through kickbacks and skimming.

Dec. 17, 1999
Pension board Chairman Richard N. Dixon is said to have asked staff member to inquire about indictment. Board's Investment Committee meets; participants say Bond is not discussed.

Dec. 29, 1999
City University of New York endowment fund fires Bond.

March 2000
Bond begins scheme to defraud clients by "cherry-picking." Maryland pension system among victims.

June 15, 2000
Bond uses roughly $5 million in pension money to buy stock in new Chapman company, eChapman.com. Pays $13 a share in initial public offering.

June 20, 2000
eChapman.com begins trading on open market. Stock never rises above $9.

July 2000
Chapman gives Bond another $10 million in pension money to invest.

May 2001
Bond uses pension money to buy 90,000 more shares of eChapman.com. Pays $2.41 to $2.61.

Aug. 9, 2001
Bond indicted on charges of defrauding clients, including Maryland pension system, through "cherry-picking" scheme. His firm shut down by SEC.

Oct. 31, 2001
Stock in eChapman.com drops below $1 per share.

January 2002
Pension system informed that SEC is investigating Chapman, in part for letting Bond invest in Chapman companies. Board fires Chapman.

June 10, 2002
Federal jury in New York convicts Bond of fraud in cherry-picking case.

Oct. 11, 2002
Bond pleads guilty to fraud charges in kickback/skimming case.

Copyright © 2014, The Baltimore Sun
Comments
Loading