MANHATTAN (CN) – The State of New York’s former Deputy Comptroller and Chief Investment Officer David Loglisci and Henry Morris, top political adviser and chief fund raiser for Comptroller Alan Hevesi, demanded millions of dollars in kickbacks from investment managers that sought to manager assets held by the New York State Common Retirement Fund, the SEC claims in Federal Court.
The SEC also sued Nosemote LLC, Pantigo Emerging LLC, and Purpose LLC.
Loglisci was deputy comptroller from 2003 through 2006, during which time Morris was adviser to Comptroller Hevesi, the SEC says.
“Loglisci caused the Retirement Fund to invest billions of dollars with private equity firms and hedge fund managers that together paid millions of dollars to Morris and others in the form of sham ‘finder’ or ‘placement agent’ fees in order to obtain those investments from the Retirement Fund,” the complaint states. These payments to Morris and others were, in fact, little more than kickbacks that were made pursuant to undisclosed quid pro quo arrangement or were otherwise fraudulently induced by the defendants.”