ATTORNEY GENERAL CUOMO ANNOUNCES AGREEMENT WITH STEVEN RATTNER FORMER FOUNDING PRINCIPAL OF QUADRANGLE IN PUBLIC PENSION FUND INVESTIGATION
NEW YORK, N.Y. (December 30, 2010) - Attorney General Andrew M. Cuomo today announced an agreement with Steven Rattner, former founding principal of private equity firm Quadrangle Group, LLC (“Quadrangle”) in the Attorney General’s public pension fund investigation.
Mr. Rattner will pay $10,000,000 in restitution to the State of New York and be banned from appearing in any capacity before any public pension fund within the State of New York for five years. The agreement today will end the two lawsuits previously filed against Mr. Rattner by the Attorney General’s Office in New York State Supreme Court relating to the circumstances surrounding $150 million in investments in Quadrangle from the New York State Common Retirement Fund (“CRF”).
Attorney General Cuomo stated: “I am gratified that we have been able to reach an agreement in this case, as it resolves the last major action of our multi-year investigation. The state pension fund is a valuable asset held in trust for retirees and supported by taxpayers. Through the many cases, pleas and settlements in this investigation, I believe we have been able to help restore and protect the integrity of the state pension fund.”
In a statement issued in conjunction with today’s agreement, Mr. Rattner stated: “I am pleased to have reached a settlement with the New York Attorney General’s Office, which allows me to put this matter behind me. I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult. I respect the work of the Attorney General and his staff to ensure that the New York State Common Retirement Fund operates properly and in the best interests of New Yorkers.”
With today’s agreement, Cuomo’s investigation has secured agreements with nineteen firms and five individuals, garnering over $170 million for New York and the pension fund. The investigation has led to eight guilty pleas, including pleas by former Comptroller Alan Hevesi, his chief political consultant, and his Chief Investment Officer.
BACKGROUND INFORMATION
Last year, Cuomo announced his Public Pension Fund Reform Code of Conduct, which, among other things, bans investment firms from compensating intermediaries for introductions to public pension funds. To date, nineteen firms have endorsed the Code: investment firms The Carlyle Group, Riverstone Holdings, LLC, Pacific Corporate Group Holdings, LLC, HM Capital Partners I, Levine Leichtman Capital Partners, Access Capital Partners, Falconhead Capital, Markstone Capital Group, Ares, Freeman Spogli, Quadrangle, GKM, and Paladin Homeland Security Holdings; placement agent Wetherly Capital Group; political consulting firm Global Strategy Group; lobbying firms Platinum Advisors and Patricia Lynch Associates; law firm Manatt Phelps & Phillips, LLP; and pension fund advisor Aldus Equity. Four individuals have also agreed to abide by the Code of Conduct: David Leuschen of Riverstone, and unlicensed placement agents Kevin McCabe, Jerry Weiss and William (“Bill”) White.
These firms collectively have agreed to return more than $100 million associated with pension fund investments; these funds will principally be provided to the pension fund for the benefit of the pension holders. Payments from individuals, including criminal defendants, bring that total to over $170 million for the pension fund and the State.
Attorney General Cuomo’s investigation into corruption at the pension fund has led to a number of criminal charges and eight guilty pleas to date, including guilty pleas by the following individuals: former Comptroller Alan Hevesi; Hevesi’s former paid political advisor Henry “Hank” Morris; former Chief Investment Officer at the Office of the State Comptroller David Loglisci; former Liberal Party Chair Ray Harding; investment advisor Saul Meyer; hedge fund manager Barrett Wissman; unlicensed placement agent Julio Ramirez; and venture fund manager Elliott Broidy.
Mr. Rattner will pay $10,000,000 in restitution to the State of New York and be banned from appearing in any capacity before any public pension fund within the State of New York for five years. The agreement today will end the two lawsuits previously filed against Mr. Rattner by the Attorney General’s Office in New York State Supreme Court relating to the circumstances surrounding $150 million in investments in Quadrangle from the New York State Common Retirement Fund (“CRF”).
Attorney General Cuomo stated: “I am gratified that we have been able to reach an agreement in this case, as it resolves the last major action of our multi-year investigation. The state pension fund is a valuable asset held in trust for retirees and supported by taxpayers. Through the many cases, pleas and settlements in this investigation, I believe we have been able to help restore and protect the integrity of the state pension fund.”
In a statement issued in conjunction with today’s agreement, Mr. Rattner stated: “I am pleased to have reached a settlement with the New York Attorney General’s Office, which allows me to put this matter behind me. I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult. I respect the work of the Attorney General and his staff to ensure that the New York State Common Retirement Fund operates properly and in the best interests of New Yorkers.”
With today’s agreement, Cuomo’s investigation has secured agreements with nineteen firms and five individuals, garnering over $170 million for New York and the pension fund. The investigation has led to eight guilty pleas, including pleas by former Comptroller Alan Hevesi, his chief political consultant, and his Chief Investment Officer.
BACKGROUND INFORMATION
Last year, Cuomo announced his Public Pension Fund Reform Code of Conduct, which, among other things, bans investment firms from compensating intermediaries for introductions to public pension funds. To date, nineteen firms have endorsed the Code: investment firms The Carlyle Group, Riverstone Holdings, LLC, Pacific Corporate Group Holdings, LLC, HM Capital Partners I, Levine Leichtman Capital Partners, Access Capital Partners, Falconhead Capital, Markstone Capital Group, Ares, Freeman Spogli, Quadrangle, GKM, and Paladin Homeland Security Holdings; placement agent Wetherly Capital Group; political consulting firm Global Strategy Group; lobbying firms Platinum Advisors and Patricia Lynch Associates; law firm Manatt Phelps & Phillips, LLP; and pension fund advisor Aldus Equity. Four individuals have also agreed to abide by the Code of Conduct: David Leuschen of Riverstone, and unlicensed placement agents Kevin McCabe, Jerry Weiss and William (“Bill”) White.
These firms collectively have agreed to return more than $100 million associated with pension fund investments; these funds will principally be provided to the pension fund for the benefit of the pension holders. Payments from individuals, including criminal defendants, bring that total to over $170 million for the pension fund and the State.
Attorney General Cuomo’s investigation into corruption at the pension fund has led to a number of criminal charges and eight guilty pleas to date, including guilty pleas by the following individuals: former Comptroller Alan Hevesi; Hevesi’s former paid political advisor Henry “Hank” Morris; former Chief Investment Officer at the Office of the State Comptroller David Loglisci; former Liberal Party Chair Ray Harding; investment advisor Saul Meyer; hedge fund manager Barrett Wissman; unlicensed placement agent Julio Ramirez; and venture fund manager Elliott Broidy.
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