Ex-N.Y. Official Sentenced To At Least One Year In Pay-To-Play Case

Apr 15 2011 | 12:40pm ET

Former New York State Comptroller Alan Hevesi has been sentenced to up to four years in prison for his role in a pay-to-play scandal at the state's main public pension plan, one that ensnared several high-profile alternative investment firms.

Hevesi pleaded guilty in October to official corruption, admitting that he approved a $250 million investment by the New York State Common Retirement Fund in private equity firm Markstone Capital Group in exchange for $1 million in benefits from that firm's then-chairman, Elliott Broidy.

With good behavior, Hevesi could be out of jail in less than a year. But he could also spend just as much time—if not more—behind bars than his former lieutenant, Henry Morris, who admitted to being the ringleader of the scam and who was sentenced to 16 months to four years.

New York State Justice Michael Obus imposed the sentence on Hevesi despite pleas for mercy that pointed to the 71-year-old's long career in public service, including a stint as New York City Comptroller, his ill-health and the fact that he did not benefit much personally from the scam, unlike Morris and several others.

"I don't think it's an exaggeration to suggest to your honor that a prison sentence of Mr. Hevesi, with his medical conditions, could possibly be a death sentence for him," Hevesi's lawyer, Bradley Simon, said.

Obus was unmoved. "When a person in [Hevesi's] situation violates [the public's] trust, the damage, though not easily quantifiable, is quite profound."


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

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

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.