Tuesday, 31 March 2015
Last updated 43 min ago
Mar 23 2010 | 3:27am ET
The man at the center of the pay-to-play scandal at New York’s public pension fund acknowledges that his practices may have been unsavory, but were not illegal.
Henry Morris’ attorneys filed a 153-page response to their client’s indictment last year on charges of pension fraud. New York State Attorney General Andrew Cuomo charges that Morris, a top political aide to former state Comptroller Alan Hevesi, whose office oversaw the New York State Common Retirement Fund, demanded kickbacks and political contributions from money managers in exchange for awarding mandates from the pension.
The scandal has ensnared some of the biggest names in the alternative investments industry, including the Carlyle Group and Quadrangle Group. The only problem, according to Morris’ lawyers, is that none of it was illegal.
“The simple fact is that no matter how much the Attorney General disapproves as a matter of policy or ethics of the web of relationships that provided access and influence in the investment process, there was no crime here,” they wrote.
“In keeping with age-old traditions and longstanding practice in New York and nationwide, private equity and hedge funds frequently hire politically-connected attorneys, consultants, placement agents, finders or third-party marketers to facilitate introductions or access to staff, or to heighten their credibility when they are pitching the merits of their services. The private equity and hedge fund managers also, at times, make political contributions.”
Morris’ response comes just a week after David Loglisci, former chief investment officer of the CRF, pleaded guilty to violating the state’s general business law. He is cooperating with authorities.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…