Hevesi’s Son Implicated In Probe
by Colin Gustafson, Assistant Editor
10/11/2007 The Queens Chronicle
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More members of the Hevesi political dynasty are finding themselves in hot water this week as state investigators widen the scope of their probe into the family’s allegedly illicit financial dealings. The state attorney general is demanding that a business owned by former Forest Hills lawmaker Daniel Hevesi turn over financial records on suspicion that they might reveal improper business ties with his father, the former Comptroller Alan Hevesi.
For more than four years, the elder Hevesi oversaw the state’s $154 billion pension fund — one of the nation’s largest — from which financial businesses across the state have long vied to win business. Now, prosecutors believe Daniel Hevesi, who left the state Senate unexpectedly in 2002 to work in the financial services industry, may have received fees for connecting some of those investors with the fund his father managed. His criminal defense attorney adamantly denied the charges, telling The New York Times last week that her client would willingly turn over documents subpoenaed by Attorney General Andrew Cuomo’s office.
But the younger Hevesi’s potential conflicts of interest could be wide ranging, prosecutors believe. After not seeking re-election to a third term in Albany, the former legislator worked for York Stockbrokers, a firm that has acted as a “placement agent,” or intermediary, between financial businesses and the pension fund, according to published reports. Daniel Hevesi later joined Praetorian Securities, an investment firm that has acted as a placement agent for part of the city’s pension fund. Additionally, in 2005, he was hired by the hedge fund Third Point Capitol, just months after the comptroller’s office had invested in the company.
The Hevesi family’s lawyers have staunchly denied wrongdoing by their clients in those transactions, asserting that none of Daniel Hevesi’s investments were brokered through — or had anything to do with — his relationship with his father. Still, the family has been hard-pressed to avoid the harsh glare of scandal recently. Last winter, Alan Hevesi resigned as comptroller after pleading guilty to felony charges that he used state workers to chauffeur his ailing wife around the state capital.
The guilty plea quickly spurred further investigations by both Cuomo and Albany County’s district attorney, David Soares. Since then, the separate probes have implicated a slew of other friends and relatives — including Hevesi’s younger son, Forest Hills Assemblyman Andrew Hevesi. Investigators began looking deeper into the assembylman’s campaign records earlier this year after uncovering political contributions from investment firms in which Alan Hevesi had invested millions of dollars in pension funds.
Andrew Hevesi’s office declined to comment on the probe, but said the legislator was prepared to cooperate with authorities. “We’ve been aware of this (the probe) for a while and have seen it coming down the pipes,” said Todd Ferrara, a spokesman for the assemblyman. “The governor’s folks have said they’re interested in knowing more, but no decisions have been made yet. So we haven’t taken a position ... either.”
by Colin Gustafson, Assistant Editor
10/11/2007 The Queens Chronicle
Email to a friendPost a CommentPrinter-friendly
More members of the Hevesi political dynasty are finding themselves in hot water this week as state investigators widen the scope of their probe into the family’s allegedly illicit financial dealings. The state attorney general is demanding that a business owned by former Forest Hills lawmaker Daniel Hevesi turn over financial records on suspicion that they might reveal improper business ties with his father, the former Comptroller Alan Hevesi.
For more than four years, the elder Hevesi oversaw the state’s $154 billion pension fund — one of the nation’s largest — from which financial businesses across the state have long vied to win business. Now, prosecutors believe Daniel Hevesi, who left the state Senate unexpectedly in 2002 to work in the financial services industry, may have received fees for connecting some of those investors with the fund his father managed. His criminal defense attorney adamantly denied the charges, telling The New York Times last week that her client would willingly turn over documents subpoenaed by Attorney General Andrew Cuomo’s office.
But the younger Hevesi’s potential conflicts of interest could be wide ranging, prosecutors believe. After not seeking re-election to a third term in Albany, the former legislator worked for York Stockbrokers, a firm that has acted as a “placement agent,” or intermediary, between financial businesses and the pension fund, according to published reports. Daniel Hevesi later joined Praetorian Securities, an investment firm that has acted as a placement agent for part of the city’s pension fund. Additionally, in 2005, he was hired by the hedge fund Third Point Capitol, just months after the comptroller’s office had invested in the company.
The Hevesi family’s lawyers have staunchly denied wrongdoing by their clients in those transactions, asserting that none of Daniel Hevesi’s investments were brokered through — or had anything to do with — his relationship with his father. Still, the family has been hard-pressed to avoid the harsh glare of scandal recently. Last winter, Alan Hevesi resigned as comptroller after pleading guilty to felony charges that he used state workers to chauffeur his ailing wife around the state capital.
The guilty plea quickly spurred further investigations by both Cuomo and Albany County’s district attorney, David Soares. Since then, the separate probes have implicated a slew of other friends and relatives — including Hevesi’s younger son, Forest Hills Assemblyman Andrew Hevesi. Investigators began looking deeper into the assembylman’s campaign records earlier this year after uncovering political contributions from investment firms in which Alan Hevesi had invested millions of dollars in pension funds.
Andrew Hevesi’s office declined to comment on the probe, but said the legislator was prepared to cooperate with authorities. “We’ve been aware of this (the probe) for a while and have seen it coming down the pipes,” said Todd Ferrara, a spokesman for the assemblyman. “The governor’s folks have said they’re interested in knowing more, but no decisions have been made yet. So we haven’t taken a position ... either.”
Just for the record -- and this is Todd Ferrara who was quoted in the story -- Colin completely misquoted me here. He called me regarding an separate issue, involving the closing of Parkway Hospital I believe, and I told him that we had seen it coming down the pike. I never spoke with him about the controversy surrounding Alan Hevesi either on or off the record. If you read carefully, it is pretty obvious that the quote was taken out of context and inserted into this story. First, he has to insert the word "probe" in parentheses to the first quoted portion, then the second portion refers to a "position" and interest by the Governor. The Governor, of course, has no involvement with the ongoing probe which was run out of the AG's office.
ReplyDeleteI guess i watch it in CNN.
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