Thursday, April 15th 2010, 11:13 AM
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 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."
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.