Saturday, April 16, 2011

Breaking News New York's Pay to Play Pension Scandal

Breaking News New York's Pay to Play Pension Scandal

Breaking News Meeks slapped with subpoena in federal probe of Katrina funds on the House floor

Breaking News New York's Pay to Play Pension Scandal

The Quadrangle Group, the private equity firm that was once run by the Obama administration’s car czar, has agreed to settle a corruption investigation with New York State and the Securities and Exchange Commission, New York Times reported.

HUGE: Quadrangle Settles Suit, But Specifically Slams Founder Steve Rattner The Business Insider* SEC files charges against Quadrangle GroupWashington Post
SEC Files Civil Charges Against Quadrangle In 'Pay-To-Play' Probe (WSJ) * Quadrangle sued in NY pay-to-pay probe Reuters * Quadrangle Group Sued Over Kickback 'Scheme' by SEC BusinessWeek * SEC Charges Private Equity Firm in Kickback Scheme Involving New York Pension Fund

True New March 14, 2010

DiNapoli In Cuomo’s Crosshairs *DiNapoli Ensnared in Pension Fund Inquiry* The Wolf at Thompson's Door * True News: Wolf at Thompson Door, Part II . Avella Opens A Cut * DiNapoli: I’m Not Involved In Pension Mess

Next For Sure
Hevesi fallout widens to include Rattner, Global Strategy Group

Quadrangle Settles with Cuomo, Trashes Rattner; Global Fined Too

Global Strategies Group
, whose CEO Jon Silvan will pay $2 million for serving unlicensed broker. Global, which did work for former Gov. Elliot Spitzer, is said to have received $1.3 million for helping facilitate pension fund investments in private equity funds managed by two firms.

Car Czar Steve Rattner Is All About "Chooch" - Chooch *

Steve Rattner, Obama's putative "car czar," was named in an SEC investigation claiming his investment firm funded distribution of a movie named "Chooch" in exchange for NY pension business. But what is "Chooch?

Pay to Play Liberal Party

Former New York Liberal Party head Ray Harding charged with taking kickbacks in pension fund scheme

Consultants Who Use Their Influence to Join the Play to play Orgy
Malpass To Gillibrand: Dump Global * Gov. David Paterson initially hired Risa Heller, who came to Global from Sen. Chuck Schumer’s shop, to run his communications operation after he ascended to replace Spitzer in March 2008, enabling the firm to maintain its toehold in Albany. But Global and Paterson parted ways in February 2009. Sen. Kirsten Gillibrand is now one of Global’s marquis clients. UPDATE: Oh yes, and Global has also worked for…Andrew Cuomo (during the 2006 AG’s race) * Malpass Slams Gillibrand On Global Ties * Lobbyist Was Paid for Pension Fund Deals, Cuomo Says * DiNapoli Meeting Under Investigation By AG's Office * Gillibrand won't cut ties with Global Strategy despite AG report * Gillibrand, Rice Stick With Global

Liu Wants to Keep Money Manages

The manager of New York City's $98 billion pension fund, City Comptroller John Liu, says he wants to revoke a ban on middlemen who arrange private equity deals * Bringing Back the Fixers (NYT Ed)

Quadrangle Settles With Cuomo and S.E.C.
Statement by Quadrangle Leaves Steve Rattner Hanging
“We wholly disavow the conduct engaged in by Steve Rattner, who hired the New York State Comptroller’s political consultant, Hank Morris, to arrange an investment from the New York State Common Retirement Fund. That conduct was inappropriate, wrong, and unethical. We embrace the reforms in the Attorney General’s Code of Conduct, including the campaign contribution and placement agent ban, which are vitally necessary to eliminate pay-to-play practices from the public pension fund investment process. We urge others in the industry to follow.” * Quadrangle's Anti-Love Letter To Steve Rattner (WSJ) * Muck tracker - Quadrangle Group settles pension fund cases

What True News has written about Steve Rattner during the past years
Steve Ratner Pension MessWho's Afraid of Steve Rattner? Everyone? * bloomberg pensionMess * The Wolf at Thompson's Door * True News: Wolf at Thompson Door, Part II . Avella Opens A Cut * DiNapoli * pension pay to play * The Hevesi Team is on the Pay to Play Varsity Division * Investors and Developers Control Comptroller's Campaign * Organized Crime Politics: Comptroller Office for Sale $$$ * Rattner: Toxic Conflict of Interest; Is the NYT at Risk? * Mayor Won't Forsake Rattner

The Hevesi Team is on the Pay to Play Varsity Division

Hevesi accepted six luxury vacations to Israel and Italy from a California venture capitalist Elliott Broidyto gain the right to manage $250 million in state pension-fund assets.Broidy pleaded guilty to a felony charge of rewarding official misconduct -- in cases involving at least four high-level officials in the comptroller's office whom he didn't name -- and had agreed to forfeit $18 million in fees he received for managing pension-fund investments Hevesi took swank trips as 'payoffs' (NYP) * Ex-Controller Alan Hevesi and actress Peggy Lipton caught up in huge pension bribery scandal *** The Morning Leverage: The Most Direct Link To Hevesi Yet * L.A. venture capitalist pleads guilty (LA Times) *** Lies, lies - all lies: Alan Hevesi's falsehoods come back to haunt him in bribery case In 2006 the Daily News Editorial Board interrogated Hevesi about some of these very matters in October 2006 - when the issue was not bribes, but campaign donations from Broidy and his wife. . .Hevesi acknowledged that entrusting Broidy with a quarter-billion was his idea but claimed it was vetted and approved by outside experts. The truth, according to Broidy, was far different. His was a tale of public officials bought and paid for. And cheaply, at that. In return for his $1 million investment in bribes, Broidy reaped an $18 million jackpot in management fees - money he must now give back *** Guilty Plea in Fraud Case Tied to New York Pension *** Here's the Release on Broidy's Guilty Plea in Pay-to-Play Probe* Harding Pleads Guilty in New York State Pension Scam (Update7) Oct ...

Robin Rosenzweig, Broidy’s wife, contributed $80,000 to Hevesi’s comptroller campaigns between 2002 and 2004, according to New York state Board of Elections data. On Sept. 20, 2002, she gave “Hevesi 2002” $20,000. She gave another $10,000 on Oct. 4, 2002. On July 30, 2003, she gave “Hevesi for New York” $25,000, and on Dec. 10, 2004, she gave another $25,000. In addition, Broidy and his wife also each contributed $3,400 to the “Hevesi for Assembly” state campaign of Alan’s son, Andrew, on April 13, 2005.

"Broidy is now cooperating" Cuomo
Hevesi and others have be having sleepless nights. As part of his plea bargain, Mr. Broidy has agreed to forfeit $18 million. He was freed on bail after entering his plea on Thursday and will be allowed to travel, with restrictions. He could get up to four years in prison, but his cooperation could lead to a lighter sentence.

Cuomo said Broidy put up $300,000 that eventually was invested in the indie flick "Chooch," produced by the brother of David Loglisci, Hevesi's chief of pension investments.Loglisci is under indictment. The movie was financed with contributions from a number of businessmen trying to land investments from the state pension fund, valued in May at $109.9 billion. It was distributed on DVD by a company owned by the Quadrangle Group, the private equity firm founded by Steven Rattner, now the former head of the Obama administration's auto industry task force.

"So what did the genius Steven Rattner? Rattner agreed to pay $88,841 to Loglisci for the right to distribute Chooch on DVD. (I would like to know the financial model, which Rattner used to value the DVD rights of Chooch at $88,841.)" (Black Star News ) Car Czar Steve Rattner Is All About "Chooch" * Steve "Chooch" Rattner | Another Obama Headache? * Small film ‘Chooch’ at center of big political storm * The Public Pension Shakedown Why would a smart guy invest in a movie named 'Chooch'? (WSJ)

Indicted NY Consultant Earned Fees From LA Police and Fire Pension Plan Morris -- through his firm Searle & Co. -- earned fees from a $10 million deal in 2005 between the Los Angeles Fire and Police Pensions and Quadrangle Group [4], the hedge fund founded by Obama administration official Steven Rattner. The California Public Employees' Retirement System [5] also made a $100 million investment in Quadrangle in 2005.

True News has reported earlier that Morris had a connection with a California firm called Wetherly Capital Group [2], which split fees with Morris in two deals at the New York fund and three deals in California.

Mod Squad admitted briber Elliott Broidy, whose pension-fund payoffs allegedly included $90,000 to ex-Hevesi aide Jack Chartier and "Mod Squad" actress gal pal Peggy Lipton

The Circle that Controls NY's Pensions Continues

Broidy also rewarded another official in Hevesi's office by providing a "sham" $380,000 consulting contract to a relative, Cuomo said. According to the NYP a source identified the official as former Deputy Comptroller Tom Sanzillo and said the contract went to his brother Frank Sanzillo, a lobbyist at the state Capitol.
Tom Sanzillo is Comptroller Thomas P. DiNapoli First Deputy Controller
Frank Sanzillo was indicted in 1987 in a payroll abuse investigatio, as part of the Manfred Ohrenstein investigation of corruption in Albany. Frank who was once considered a whiz kid worked his way up though the Brooklyn Democratic Organizaton.

(Great Quote by Ohrestein after he was indicted in light of the Bruno Trial over 20 years later. "Since questions about his payroll first arose last spring, the 62-year-old Ohrenstein has maintained that the practices he is accused of were not crimes but rather the traditional way of doing business in the bare-fisted world of Albany politics." NYT Sept 17, 1987)

 Wall Street Rips Off NY's Pension Funds With High Fees 

Taxpayers foot $850M bill for Wall St.'s pension fees

NYC pension costs over the past decade, have risen from $1.2 billion to $7.7 billion.  Liu said one of the major factors in the shortfall was higher than expected investment and administrative fees, which were $71 million in 2005, and have risen more than four-fold to $313 million. * Liu positioning to become working class pick for mayor (DN)

 The Courts are Not Through With New York Pension Corruption and Political Connections Network

A lawsuit brought by a New Mexico government agency seem to be a bellwether for a new new type of court action to recover money lost to politically connected pension managers and financial firms. The NM lawsuit is going after top manager and campaign contributors who improperly got or steered New Mexico investments to political supporters of former Gov. Bill Richardson.  The politically connected lawsuit looks a lot like what clawback lawyer Irving Parcard is doing to investors like the NY Mets owner the Wilpons who made out like bandits because of their relationship with Bernie Madoff.  This NM case opens up future breach of fiduciary duty lawsuits by pension investors who lost money because of corruption in the state and city's pension funds not only Dan Hevesi and Hank Morris already named in the NM lawsuit but all those lawyered up New York money managers and financial houses who like Steve Rattner got away with paying fines to escape jail. A  NM lawsuit in NY will not put anyone in jail but will show political connections from contributions to endorsements to New York comptrollers on who made money off of New York's pension went well beyond the jailed Hevesi.

Hank Morris, Dan Hevesi Named In NM Lawsuit

Disgraced former political consultant Hank Morris and Dan Hevesi, an ex-state senator and son of jailed former state Comptroller Alan Hevesi, are named in pay-to-play pension fund lawsuits brought by a New Mexico government agency, the AP reportsLast fall, the Times reported Alan Hevesi had agreed to plead guilty to a felony charge for his role in the pension fund mess in order to protect Dan Hevesi and also his younger son, Assemblyman Andy Hevesi. Dan Hevesi was one of several placement agents on a New Mexico investment deal. 


It is Good to Be the King - Albany Bosses Tell the Union Workers $$$ Hikes for Us, Nothing For U
Do What We Say, Not As We Do
State government workers unions, who agreed to freeze their salaries for several years, are upset over talk that state legislators could consider a bill to raise their pay in a special session this fall  State government workers unions,

Public Authorities Trimming Jobs . . . What About Albany or City Hall?
The state’s vast public authority system has been trimming jobs, as employment dropped from 160,472 in 2009 to 144,377 last year, the Albany Times Union reports: 


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