Friday, April 16, 2010

Steve Rattner-linked Quadrangle agrees to pay NY $7M in wake of pension flap

Thursday, April 15th 2010, 11:13 AM

The Daily News first reported in February 2009 that Rattner, a  big-time Democratic donor and fund-raiser who served as President  Obama's car czar, and Quadrangle were tied to the scandal.
Mallin/Bloomberg
The Daily News first reported in February 2009 that Rattner, a big-time Democratic donor and fund-raiser who served as President Obama's car czar, and Quadrangle were tied to the scandal.

ALBANY - The former private equity firm with ties to the politically connected Steve Rattner has settled its involvement in a massive pay-to-play scam in the state Controller's Office.

Attorney General Andrew Cuomo announced Thursday that Quadrangle Group agreed to repay the state $7 million and adopt a code of conduct pushed by the AG.

Quadrangle, which until recently handled Mayor Bloomberg's money, also agreed to "fully cooperate" with Cuomo's ongoing investigation into Rattner.

"We wholly disavow the conduct engaged in by Steve Rattner," Quadrangle said in a statement.

The Daily News first reported in February 2009 that Rattner, a big-time Democratic donor and fund-raiser who served as President Obama's car czar, and Quadrangle were tied to the scandal.

Quadrangle Group won $150 million in state pension business in March 2005 with the help of Hank Morris, a top political consultant to the state's disgraced ex-controller, Alan Hevesi.

Quadrangle says that it was Rattner who hired Morris.

It was also Rattner, who in the middle of the investment decision-making process, arranged a DVD distribution deal for a poorly-received movie "Chooch," which was produced by the brother of Hevesi's chief investment officer.

"That conduct was inappropriate, wrong, and unethical," Quadrangle said in its statement.

Rattner is no longer associated with the firm and is not part of the settlement.
He could not immediately be reached for comment.

Cuomo spokesman Richard Bamberger said Quadrangle has fully cooperated in the probe "and has also instituted appropriate remedial measures."

Also settling with Cuomo Thursday was high-profile political consulting firm Global Strategies Group, whose CEO Jon Silvan will pay $2 million.

Global, which did work for former Gov. Elliot Spitzer, is said to have received $1.3 million for helping facilitate pension fund investments in private equity funds managed by two firms.

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