Ex-N.Y. Pension CIO Pleads Guilty In Pay-To-Play Case

Mar 11 2010 | 3:26pm ET

The former chief investment officer of a New York public pension fund has pleaded guilty to his role in a pay-to-play scandal that involved a number of prominent hedge funds and private equity firm.

David Loglisci pleaded guilty yesterday to violating New York’s general business law.  He is cooperating with the continuing investigation.

The specific count that Loglisci pleaded to involved the Carlyle Group and Riverstone Holdings. According to New York Attorney General Andrew Cuomo, Loglisci’s New York State Common Retirement Fund invested $150 million in the Carlyle/Riverstone Global Energy and Power Fund in 2003 in exchange for Riverstone founder David Leuschen’s $100,000 investment in a movie produced by Loglisci’s brother. Carlyle, Riverstone and Leuschen have all reached settlements with Cuomo.

Loglisci said Henry Morris, the top political advisor to former New York Comptroller Alan Hevesi, controlled which alternative investment firms would receive allocations, and which would not. Morris, who has pleaded not guilty in the case, favored firms that donated to Hevesi’s campaigns, and often extracted kickbacks in the form of sham placement fees.

Hevesi has not been charged in the kickback scheme, although Cuomo’s investigation is ongoing.

The attorney general said that Loglisci did not receive any of the kickback money. But he admitted that he knew Morris was receiving them and splitting them with others, several of whom have already pleaded guilty in the case.

Loglisci faces up to four years in prison at sentencing; without the deal, he could have been looking at 25 years.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR