Most Charges In Pay-To-Play Case Stand

Aug 3 2010 | 3:48am ET

The man at the center of New York’s pay-to-play pension fund scandal, which ensnared several prominent alternative investment firms, saw 13 charges against him dismissed on Thursday.

Unfortunately for Henry Morris, a judge let another 77 counts stand in a case that has thrown an unfriendly light on the business of placement agents. Morris, a top aide to former New York Comptroller Alan Hevesi, is accused of selling access to the Empire State’s $132.6 billion pension fund. Several top hedge funds and private equity funds, including the Carlyle Group, Quadrangle Group and Riverstone Holdings have settled with New York Attorney General Andrew Cuomo for allegedly participating in the pay-to-play scheme, most unwittingly.

According to Cuomo, Morris profited to the tune of $19 million from the scheme. Six other people, including the New York State Common Retirement Fund’s former chief investment officer, David Loglisci, had pleaded guilty in the case.

Among the charges against Morris dismissed were counts of grand larceny, scheme to defraud and falsifying records. The grand larceny count carried a possible 25-year sentence, but so does the enterprise corruption charge that New York State Supreme Court Justice Lewis Stone let stand.

Morris was a “central figure of the criminal enterprise,” Stone wrote in his 85-page decision, ruling that there was “sufficient” evidence “to sustain a finding that Morris conducted the criminal activities alleged in the indictment.”


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.