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Obama adviser Rattner linked to NY pension probe
Published: 4/17/09, 11:06 AM EDT
By DAVID B. CARUSO
NEW YORK (AP) - An investment company run by the head of the Obama administration's auto task force has been accused of paying more than $1 million to an aide to New York's former comptroller in a bid to win a lucrative deal with the state pension fund.
Steven Rattner was an executive at the Quadrangle Group, a private equity firm, until he left this year to lead President Barack Obama's efforts to fix the U.S. auto industry. The Wall Street Journal and The New York Times reported that Rattner met with two now-indicted men to try to win state pension fund business.
Quadrangle, while under Rattner's watch, paid huge fees to Hank Morris, a political aide to former comptroller Alan Hevesi, the Securities and Exchange Commission said in court papers filed Wednesday.
Morris and the retirement fund's former chief investment officer, David Loglisci, were indicted in March on corruption and bribery charges. New York's attorney general and the SEC have said the payments Morris collected from Quadrangle and other firms interested in landing pension fund business amounted to kickbacks.