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

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