The SEC's complaint alleges that Henry "Hank" Morris, the top political advisor and chief fundraiser for former New York State Comptroller Alan Hevesi, and David Loglisci, former Deputy Comptroller and Chief Investment Officer of the New York State Common Retirement Fund, orchestrated a fraudulent scheme from 2003 through late 2006 that corrupted the integrity of the New York State Common Retirement Fund in order to enrich Morris as well as others with close ties to Morris and Loglisci.Zero Hedge wrote about this issue before and even broke down all the hedge fund recipients of NY State pension money (link here) over the past 2 years. There are some very notable names receiving NY Pension money in the 2007-2008 period... Any ideas who the guilty hedge fund party may be? Sphere: Related Content Print this post
Specifically, the SEC alleges that Loglisci caused the fund to invest billions of dollars with private equity firms and hedge fund managers who together paid millions of dollars in the form of sham "finder" or "placement agent" fees to obtain investments from the fund. As asserted in the SEC's complaint, Morris made more than $15 million in such purported placement and finder fees.
"Investments should be based on sound decisions not shady deals," said SEC Chairman Mary Schapiro. "We will continue this investigation and will pursue anyone who unlawfully profited from their privileged access to the hard-earned contributions of public employees."
Thursday, March 19, 2009
Posted by Tyler Durden at 12:28 PM
The NY AG and the SEC have charged that former deputy NY State controller David Loglisi was receiving kickbacks to steer pension funds to certain hedge funds and private equity firms. Also charged is Henry Morris, top political advisor and chief fundraiser for former NY State Comptroller and CIO of the New York State Common Retirement Fund David Havesi.
Labels: New York State Pension Funds