Rattner To Settle Pay-To-Play Scandal Charges

Oct 14 2010 | 10:12am ET

Steven Rattner, the founder of alternative investments firm Quadrangle Group, will accept a two-year ban from the securities industry to settle charges stemming from an alleged kickbacks scheme at New York’s largest public pension fund.

Rattner, who until last summer served as President Barack Obama’s top adviser on restructuring the U.S. auto industry, will also pay a $6 million fine for allegedly paying $1.1 million in finder fees to Henry Morris, the chief political consultant to former New York Comptroller Alan Hevesi. Hevesi’s office oversaw the New York State Common Retirement Fund, which invested $100 million in a Quadrangle private equity fund, earning the firm $7 million in fees.

Hevesi himself pleaded guilty to criminal corruption charges last week.

The deal with Rattner comes more than three months after the SEC first proposed a three-year bar. Rattner countered that he would accept a one- or two-year ban.

Rattner left Quadrangle to serve as Obama’s auto czar. The New York-based firm agreed to pay $7 million to settle a probe by New York State Attorney General Andrew Cuomo in April, and at the time said, “we wholly disavow the conduct engaged in by Steven Rattner.”


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

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

New customer protection rules have landed: Are you ready?

The twin debacles of MF Global and PFG have damaged the reputation of the futures industry demanding an examination of customer protection rules. New rules are being implemented, which will add cost a...

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.