N.Y. pension fund settlement worth $10M

By Keith Loria | Dec 30, 2010


NEW YORK (Legal Newsline) - New York Attorney General Andrew Cuomo announced on Thursday that he has reached an agreement with the former founding principal of a private equity firm that allegedly misappropriated money from the state's public pension fund.

Steven Rattner, the former founding principal of private equity firm Quadrangle Group, allegedly was a part of mysterious circumstances concerning $150 million in investments in Quadrangle from the New York State Common Retirement Fund.

Cuomo has established a Public Pension Fund Reform Code of Conduct, which bans investment firms from compensating intermediaries for introductions to public pension funds.

Cuomo filed two suits against Rattner for his alleged actions.

"I am gratified that we have been able to reach an agreement in this case, as it resolves the last major action of our multi-year investigation," Cuomo said.

"The state pension fund is a valuable asset held in trust for retirees and supported by taxpayers. Through the many cases, pleas and settlements in this investigation, I believe we have been able to help restore and protect the integrity of the state pension fund."

Under terms of the agreement, Rattner will pay $10,000,000 in restitution to the state and is banned for the next five years from appearing in any capacity before any public pension fund in New York.

"I am pleased to have reached a settlement with the New York attorney general's Office, which allows me to put this matter behind me," Rattner said.

"I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult. I respect the work of the Attorney General and his staff to ensure that the New York State Common Retirement Fund operates properly and in the best interests of New Yorkers."

To date, Cuomo has secured agreements with 19 firms and five individuals, garnering over $170 million for New York and the pension fund.

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