New York Pension Fund Corruption Investigation
In 2005, Quadrangle made payments to private placement agent Hank Morris to help Quadrangle raise money for its second buyout fund. Morris had come highly recommended to Rattner from U.S. Senator Charles Schumer. Hank Morris was also the chief political advisor to Alan Hevesi, the trustee of the New York State Common Retirement Fund (CRF). Morris told Rattner he could increase the size of the CRF investment in Quadrangle's second buyout fund. Rattner then agreed that Quadrangle would pay Morris 1.1% of any investments greater than $25 million from the CRF.
In 2009, Quadrangle and a dozen other investment firms, including the much larger Carlyle Group, were investigated by the U.S. Securities and Exchange Commission for the payments to Morris. The SEC viewed the payments as "kickbacks" in order to manage money for the New York State Common Retirement Fund since Morris was also a consultant to New York State Comptroller Alan Hevesi, who controlled the Retirement Fund. Quadrangle paid $7 million in April 2010 to settle the SEC investigation. In November, Rattner personally settled for $6.2 million without admitting or denying any wrongdoing.
Read more about this topic: Steven Rattner
Famous quotes containing the words york, pension, fund and/or corruption:
“Rome, like Washington, is small enough, quiet enough, for strong personal intimacies; Rome, like Washington, has its democratic court and its entourage of diplomatic circle; Rome, like Washington, gives you plenty of time and plenty of sunlight. In New York we have annihilated both.”
—M. E. W. Sherwood (1826–1903)
“It is a sort of ranger service. Arnold’s expedition is a daily experience with these settlers. They can prove that they were out at almost any time; and I think that all the first generation of them deserve a pension more than any that went to the Mexican war.”
—Henry David Thoreau (1817–1862)
“School success is not predicted by a child’s fund of facts or a precocious ability to read as much as by emotional and social measures; being self-assured and interested: knowing what kind of behavior is expected and how to rein in the impulse to misbehave; being able to wait, to follow directions, and to turn to teachers for help; and expressing needs while getting along with other children.”
—Daniel Goleman (20th century)
“All religions have based morality on obedience, that is to say, on voluntary slavery. That is why they have always been more pernicious than any political organisation. For the latter makes use of violence, the former—of the corruption of the will.”
—Alexander Herzen (1812–1870)