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$5 Million Settlement in NY Pension Fraud

MANHATTAN (CN) - The SEC this morning charged the Quadrangle Group with paying kickbacks to get a $100 million investment from the New York State Retirement Fund. "The investment came only after a then-executive at Quadrangle arranged for an affiliate to distribute the DVD of a low-budget film that former New York State Deputy Comptroller David Loglisci and his brothers had produced," the SEC said.

Quadrangle Group and Quadrangle GP Investors agreed to settle the complaint and will pay $5 million, the SEC said.

The federal complaint claims that "the Quadrangle executive" also agreed to pay more than $1 million in "purported finder fees" to Henry Morris, the top political adviser and chief fund raiser for former New York State Comptroller Alan Hevesi.

The SEC already has charged Morris and Loglisci with arranging the scheme to take kickbacks from investment management firms that wanted a piece of the Retirement Fund's assets.

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