U.S. Attorney Preet Bharara charged Kang in federal court Wednesday.

NEW YORK (Diya TV) — U.S. prosecutors this week accused a former portfolio manager at New York state’s retirement fund, the third largest in the United States, of steering $2 billion in trades to two brokerage firms in exchange for gifts such as cash, drugs and prostitutes.

Navnoor Kang, the former director of fixed income at the New York State Common Retirement Fund, was charged in Manhattan federal court along with Deborah Kelley, a former Sterne Agee Group Inc managing director.

Kang was arrested at his home Wednesday morning in Portland, Oregon. Both face charges that include securities fraud and wire fraud and were also sued by the U.S. Securities and Exchange Commission in a related civil lawsuit.

Gregg Schonhorn, a broker-dealer at FTN Financial Securities Corp, secretly pleaded guilty to paying bribes on Dec. 15, authorities said. Prosecutors said that the aforementioned Kelley and Schonhorn showered Kang with cash, entertainment, luxury gifts, prostitutes and drugs valued at about $100,000 in exchange for fixed-income business.

“This was an age-old and classic tale of quid-pro-quo corruption,” Manhattan U.S. Attorney Preet Bharara told reporters.

During weekend trips to Montreal in 2014, according to court documents, Schonhorn paid for cocaine, meals and travel expenses for Kang and another fund employee. And Kelley bought Kang concert tickets to see Paul McCartney and a ski trip for him and his girlfriend to Park City, Utah, according to authorities.

In exchange for these gifts, prosecutors allege Kang steered $2 billion in fixed-income business to FTN and Sterne Agee, from which Kelly, Schonhorn and their employers earned millions of dollars in commissions, prosecutors said.

Kang worked at the $184.5 billion fund from January 2014 through February 2016, when the state said he was dismissed from his position. He was responsible for investing over $55 billion in fixed income assets, according to his LinkedIn profile. He previously worked at Guggenheim Partners Asset Management and Pacific Investment Management Co after beginning his career at Goldman Sachs Group Inc, according to the profile.