Kevin Ingram (bond trader)

Kevin Ingram
Born	Philadelphia, Pennsylvania, U.S.
Occupation(s)	Businessman, investment banker, bond trader
Known for	Top 25 most accomplished Black executives on Wall Street; money laundering conviction

Kevin Ingram is an American businessman, investment banker, and bond trader. He was acknowledged as one of the top 25 most accomplished Black executives on Wall Street by Black Enterprise in both 1992 and 1996. In 2001, Ingram admitted guilt to money laundering charges connected to an arms-trafficking investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), resulting in an 18-month incarceration and a $185,000 penalty.

Early life

Hailing from Philadelphia, Pennsylvania, Ingram was raised by Nathan Ingram, a former United States Army serviceman and real estate appraiser/investor, and Doris Ingram, who worked as a volunteer nurse. Following his father's suicide when Kevin was five years old, his mother took over managing the family’s real estate enterprise.

Recognized as a mathematics prodigy at Central High School, Ingram pursued chemical engineering at the Massachusetts Institute of Technology (MIT), graduating in 1980. He earned a Western Electric scholarship to continue engineering studies at Stanford University. However, in June 1981, he left Stanford to begin work as an engineer. In February 1982, he faced arrest for issuing bad checks and misdemeanor property theft charges, leading to five weekends in jail and two years of probation.

In September 1982, motivated by Wall Street's preference for candidates with strong mathematical skills, Ingram returned to Stanford's Graduate School of Business. He completed his MBA program in 1984.

Goldman Sachs

Ingram started his finance career at Lehman Brothers as an associate. Following its acquisition by Shearson/American Express, he transferred to Goldman Sachs after one year to remain within the financial sector. By 1988, he had been promoted to vice president and by 1992 was managing the collateralized mortgage obligation (CMO) derivatives trading desk, supervising junior bond traders. CMOs emerged during the mortgage boom of the 1980s by repackaging loan and interest payments into securities with varying risk levels.

Ingram sought partnership status in 1994 but was overlooked in favor of Steven Mnuchin, reportedly due to Mnuchin's familial ties. This disappointment led to increased absenteeism on Ingram’s part. After being denied partnership again in 1996, he chose to resign, expressing skepticism about Goldman Sachs' professed meritocratic principles in his final correspondence.

Deutsche Bank

In April 1996, Ingram joined Deutsche Morgan Grenfell, led by Edson Mitchell, as Managing Director responsible for commercial mortgage-backed securities. He engineered and issued substantial securities lending deals catering to international banks, insurance companies, and affluent investors. To grow the division, he brought on board former Goldman colleagues along with experts in real estate finance.

By October 1996, Black Enterprise highlighted that Ingram had allocated $500 million for Fannie Mae and $100 million for Host Marriott, marking a pioneering transaction for a hotel company. In 1998, he facilitated loans for Donald Trump, including $125 million designated for renovating 40 Wall Street and $300 million toward constructing Trump World Tower.

Although a large derivatives loss surfaced by January 1998 necessitating a significant write-down, Ingram was nonetheless promoted in August to lead global asset securitization based in London. The September 1998 Russian financial crisis combined with the collapse of Long-Term Capital Management caused substantial trading setbacks. Subsequently, Mitchell requested Ingram’s departure along with one-third of his team.

Ingram resisted this demand by seeking enhanced severance compensation and threatening legal action on grounds of racial discrimination. With assistance from Jesse Jackson, they initially pursued $20 million but ultimately reached a confidential settlement believed to be approximately $6 million.

Additional Business Activities

In 1999, Ingram ventured into the real estate sector as the chief executive officer of I. W. Development LLC, a development company based in Midtown Manhattan. His plans included reopening Minton's Playhouse and refurbishing the Wells Famous Home of Chicken and Waffles. A previous effort in 1996 to revive Minton's, which involved notable figures such as Robert De Niro and Melba Wilson, was unsuccessful due to financial constraints. The Upper Manhattan Empowerment Zone Development Corporation (UMEZ) offered nearly $1 million in loans to I. W. Development to support both initiatives, with Ingram tasked with securing the remaining funding. Nevertheless, by 2000, UMEZ retracted their loan offer after Ingram was unable to obtain the additional capital required. At the time of his arrest, the renovation of Wells was halted and Minton's remained shuttered.

In 2000, Ingram launched TruMarkets, an online electronic trading platform specializing in securities, derivatives, and mortgage-backed bonds. Partnering with former Deutsche Bank trader Peter McCarthy, they presented the platform to Silicon Valley venture capitalist Gary Morgenthaler, who invested $6.2 million; Ingram contributed $2 million drawn from his severance package from Deutsche Bank. TruMarkets expanded its team to over 50 employees and enlisted board members including Jon Corzine and Herbert M. Allison. The company leased office space close to the Empire State Building and attracted significant clients such as Nomura Securities and BlackRock. Despite raising upwards of $30 million in venture capital, software issues postponed the platform’s launch from July 2000 until early 2001.

By March 2001, the collapse of the dot-com bubble forced TruMarkets into bankruptcy proceedings. Ingram was removed from his position, and the company was acquired by MortgageSight Holdings LLC, an entity backed by firms like Salomon Smith Barney, Lehman Brothers, Bear Stearns, and Credit Suisse First Boston.

Operation Sphinx

Operation Sphinx commenced in 1998 after a confidential informant notified the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) about Diaa Mohsen, an Egyptian national engaged in illicit arms transactions and weapons procurement for other organizations. Mohsen expressed intentions to purchase U.S. stinger missiles on behalf of a Pakistani intermediary with plans to smuggle them to the Taliban and Osama bin Laden, alongside mentions of other international recipients.

Interactions with Randy Glass and Diaa Mohsen

Several years prior, Ingram had met Mohsen in Jersey City, where they jointly established a zoning firm named B.I.A. Construction. Mohsen connected Ingram with Mohammed Malik, a Pakistani immigrant who owned a deli in the United States. While in Atlantic City, Mohsen encountered Randy Glass, a con artist involved in jewelry smuggling at the Trump Taj Mahal casino. During negotiations for his severance package at Deutsche Morgan Grenfell, Ingram was temporarily working on the 85th floor of the South Tower of the World Trade Center. Seeking new business opportunities, he met Glass through Mohsen. In Boca Raton, aboard Ingram’s private yacht Ingee, Glass portrayed himself as a wealthy businessman requiring investment guidance and assistance with money laundering. Subsequently, Ingram invited Glass to his office located in the South Tower.

In June 1999, Glass and Mohsen met with Ingram once more. Glass handed over $100,000 in cash for transfer purposes; Ingram issued a $91,000 cheque from a corporate account at Chase Manhattan, retaining a $9,000 commission for himself. Ingram suggested creating an offshore investment fund with a minimum capitalization of $15 million; however, Glass preferred initiating operations on a smaller scale. Together they established IAM Global Money Fund as partners.

During an investment presentation in Boca Raton, Glass introduced Ingram to "Ray Spears," who was actually undercover ATF agent Dick Stoltz. Using a whiteboard to illustrate their financial flows between accounts, Ingram explained their business strategy. He proposed launching with funds between $25 million and $30 million but Glass favored starting with more modest sums. Their subsequent transaction involved wiring $227,500 after Ingram deducted his 9% fee from an initial $250,000.

Following receipt of his payment settlement, Ingram claimed he lost interest when anticipated multi-million-dollar investments failed to come through. He described Glass as "creepy" and dishonest and ceased communication upon realizing that their true objective was money laundering assistance. For over a year afterward, Ingram remained unaware that Glass and Mohsen were involved in trafficking Stinger missiles, firearms, and grenade launchers stored within a Florida warehouse.

Arrest and sentencing

In May 2001, Stoltz, who used the alias "Ray Spears," reached out to Mohsen, claiming possession of $16 million derived from arms sales in Vietnam that he wanted to transfer. Mohsen showed interest but highlighted Ingram's financial difficulties following the downfall of TruMarkets and erratic conduct. He also mentioned that Ingram had previously "cheated him out of money" in a cell phone venture. Subsequently, Mohsen left a message urging Ingram to get in touch with Stoltz.

The following month, June 2001, Ingram met Stoltz near a hotel in Fort Lauderdale. Stoltz anticipated receiving $16 million from weapons transactions within a year. During their discussion, Ingram steered the topic toward offshore banking and expressed suspicion about whether Stoltz was recording their conversation. Stoltz reassured him, while Ingram admitted his readiness to profit despite potential damage to his professional standing. Later, Ingram contacted Stoltz via pager, proposing to fly the funds to the Netherlands on his private jet for a 25% commission plus travel expenses.

At the Embassy Suites hotel, Ingram introduced Stoltz to Walter Kapij, a business partner and pilot of a nearby Learjet. They accepted $2.2 million contained in two suitcases along with an envelope listing contact information for an individual staying at London's Royal Lancaster Hotel. On June 12, 2001, both Ingram and Kapij were apprehended in Fort Lauderdale on allegations of money laundering. Ingram was released on a $250,000 bond after forfeiting his real estate holdings, boat, and Porsche.

News of Ingram’s arrest came as a surprise to former colleagues at Goldman Sachs and Deutsche Bank. Corzine described the situation as "a tragedy" and conveyed his disappointment. A banker interviewed by the New York Observer admitted being shocked by the development.

In July 2001, federal charges were filed against Ingram for laundering $2.2 million in 2001 and an additional $350,000 in 1999, carrying a potential sentence of up to ten years imprisonment. The following month, he entered a guilty plea, agreeing to repay $185,000 and provide testimony against Moshen and Malik. On November 30, he received an eighteen-month federal prison sentence alongside a $20,000 fine. Upon sentencing, Ingram expressed remorse for letting down his family. He was released from custody in 2004.

After completing his sentence, Ingram re-entered the financial sector and made investments in the now-legal cannabis market.

Personal life

While attending Stanford, Ingram married Aleta Hayes; their union lasted approximately one year. In 1988, he wed Demetra Harrison, who worked as a back-office accountant at Goldman Sachs; they had one son before divorcing by 1996. Prior to this marriage, Ingram fathered another son with a woman he cohabited with in Brooklyn. In September 1998, he married fashion model Deann Absolam, known as "Sparkle." The couple initiated divorce proceedings during the period of his trial and conviction hearings.