Posted on 10/12/2007 9:57:53 PM PDT by neverdem
ALBANY, Oct. 11 — The Securities and Exchange Commission has begun an inquiry into oversight of the New York State pension fund, which is drawing increasing scrutiny over claims that investment firms paid friends and relatives of former Comptroller Alan G. Hevesi in exchange for business.
The S.E.C. began its examination several weeks ago, people with knowledge of it said, and is looking into potential civil violations of federal securities laws.
The move follows an investigation of the same issue begun by the New York attorney general, Andrew M. Cuomo, in January, along with an inquiry by P. David Soares, the Albany County district attorney.
The S.E.C staff is conducting an informal inquiry; a formal investigation, which would give the investigators subpoena power, requires the approval of the commissioners. The staff review involves transactions between investment firms and the $154 billion state pension fund during Mr. Hevesi’s tenure and the role of intermediaries known as placement agents that helped facilitate the deals. The staff recommends to the commission whether to launch a formal investigation.
Asked about the S.E.C. inquiry yesterday, Mr. Hevesi’s lawyer, Bradley Simon, said that Mr. Hevesi “did absolutely nothing wrong in his oversight of the pension fund” and has previously touted the fund’s strong returns during Mr. Hevesi’s tenure.
The case is becoming one of the most extensive public-integrity investigations in the state in decades, with federal, state and local investigators now involved. It has also brought new attention to the almost unchecked authority that New York...
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And, in one of the more mysterious elements of the case, a number of files that detailed the fees paid to placement agents disappeared from the comptroller’s office shortly after the fund’s chief investment officer, David Loglisci, resigned earlier this year, according to the current comptroller, Thomas P. DiNapoli.
(Excerpt) Read more at nytimes.com ...
This guy is a dem. I had to google him to find that out. The NYT would never divulge that little secret.
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