This Private Equity scandal has legs.

[Joanne98]

It’s déjà vu, all over again. Ten years ago, the State of Connecticut was rocked by Treasurer Paul Silvester’s kickback scheme, in which private equity and other investment firms made under-the-table payments in exchange for receiving fund commitments from the state pension system. The result was jailtime for Silvester, a total reworking of the state’s private equity portfolio and fines for several of the involved private equity firms.

Now we have a very similar situation going on just a few miles south, with New York Attorney General Andrew Cuomo indicting two top advisors to former NY state comptroller Alan Hevesi, on charges that include fraud, bribery, money laundering and larceny. The two men – David Loglisci and Henry “Hank” Morris – are accused of taking kickbacks from private equity firms, in exchange for fund commitments from New York Common Retirement Fund, the nation’s third-largest public pension fund with around $122 billion in assets under management. Loglisci was originally Common’s alternative investment officer, before being promoted to CIO. Morris worked at a “placement firm,” which allegedly acted as a dishonest gatekeeper.

The 128-page complaint — and a related SEC civil suit — does not allege any wrongdoing by the private equity firms that paid Morris, and several of the firms say that they’ve been told they are not subjects of the investigation. Among the firms named (either directly or via affiliates) are: The Carlyle Group, Aldus Equity, Ares Management, Falconhead Capital,Levine Leichtman Capital Partners, Lion Capital, GKM Newport, Ivy Asset Management, Odyssey Investment Group, Quadrangle Group,Pacific Corporate Group, Paladin Capital Group and Pequot Private Equity.

http://www.pehub.com/35084/this-pe-scandal-has-legs/

[glitch]

1. K & R nt

[WhiteTara]

2. kicking for those legs!

:kick:

[Lugnut]

3. K&R n/t