Cuomo's pension probe gains five more agreements

John O'Brien Apr. 16, 2010, 3:27pm


NEW YORK (Legal Newsline) - New York Attorney General Andrew Cuomo announced five more agreements in his investigation into pay-to-play tactics in public pension funds.

Three unlicensed brokers and two investment firms reached agreements with Cuomo, who has also proposed legislation that aims to reform the public pension fund investment system. It replaces the sole trustee at the New York State Common Retirement Fund with a board.

Under the agreements, Quadrangle Group is paying $7 million, GKM Newport Generation Capital Services is paying the equivalent of $1.6 million, consulting firm Global Strategy Group CEO Jon Silvan is paying $2 million, lobbying firm Platinum Advisors is paying $500,000 and unlicensed placement agent Kevin McCabe is paying $715,000.

They are also agreeing to Cuomo's code of conduct, essentially the proposed legislation.

The agreements resolve some the parties' alleged involvements with Hank Morris, political adviser to former Comptroller Alan Hevesi.

Morris has been charged with soliciting kickbacks and political contributions from investment firms.

GSG was alleged to be an unlicensed intermediary between public pension fund investments and a private equity firm, and Platinum founding principal Darius Anderson allegedly collected fees in connection with investments before obtaining a securities license.

From Legal Newsline: Reach John O'Brien by e-mail at

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