Skip to comments.Former Obama 'car czar' settles suit with state of New York (Rattner's $150 million kickback scheme)
Posted on 01/01/2011 12:17:09 AM PST by Libloather
Former Obama 'car czar' settles suit with state of New York
By Peter Schroeder - 12/30/10 02:46 PM ET
Former Obama administration "car czar" Steven Rattner has agreed to pay $10 million to settle a civil suit with the state of New York.
State Attorney General Andrew Cuomo announced the agreement Thursday, in which Rattner admitted no wrongdoing, The Associated Press reported. Cuomo will be sworn in as the state's governor on Saturday.
Rattner had been accused by Cuomo of participating in a kickback scheme that allowed his company to obtain $150 million in state pension fund investments in 2004 and 2005. Cuomo's office filed suit in November, initially seeking $26 million in fines and penalties, as well as a lifetime ban for Rattner from the securities industry. Rattner, who left the administration in the summer of 2009, denied the charges.
Rattner previously paid $6.2 million to the Securities and Exchange Commission to settle a separate lawsuit, and agreed to a two-year ban from the securities industry.
The former New York Times reporter headed the president's effort to restructure General Motors and Chrysler. GM underwent a new initial public offering of its stock in November, which exceeded analysts' expectations and earned the government $13.5 billion after it sold 411 million shares of the company's stock.
The government invested roughly $50 billion in the company last year, and about $23.1 billion has been paid back, according to the Treasury Department.
WAY TO GO NEW YORK!
By 2000, Cuomo had engineered massive new loan programs for the poor, raising the requirement for Fannie Mae and Freddie Mac to purchase half of all of their loans from low-income borrowers with little or no documentation required.
(Rattner's $150 million kickback scheme)
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I will slap you on the hand, call you a bad boy and the people will forget in time if they havent forgotten already or if they know at all. RATtner appropriatley named is a player in the game of “you be the bad guy this time and I will be the bad guy next time” Whats next on the criminal roster after I slap you real hard? sounds great, Count me in! Cancer plain and simple
This is Dem (gag) justice at work. He was selling influence? "Influence Peddling" is a connected pols' bafflegab for all-out bribery. Bribery for an ordinary citizen in New York State is a Felony punishable by 1-10 years in jail.
He should have been arrested, done the perp walk, and prosecuted criminally. Instead, he "settles" with a fine and other no-sweat restrictions. Being connected is fun (gag). Wonder how much govt monies Rattner hid offshore, in tax havens?
BACKSTORY--Dem Hank Morris, who was a top political adviser to ousted Dem State Comptroller, Alan Hevesi, went on trial on charges that he used the pension fund as a personal piggy bank -- reaping millions of dollars as a middleman between the NY state pension fund and the investment companies. Morris may have pocketed as much as $19 million after squeezing massive brokerage fees out of equity and hedge funds that wanted a piece of the state's pension pot.
Those companies included the Quadrangle Group, run by Steven Rattner (later appointed, then ousted, as Obama-administration auto-industry czar). Morris was indicted March 2009 on 77 counts of enterprise corruption and other felonies after a two-year investigation (tried and found guilty).
Democrat Hevesi, alone, controlled the $125 billion pension funds until 2006, when he resigned after pleading guilty to using state workers to chauffeur his wife. Morris solicited campaign contributions for Hevesi's re-election campaign from those doing business with the pension fund (who were suspected of providing other benefits to Hevesi's sons, Andrew and Daniel).
Democrat Morris, top political consultant to ousted Dem state Comptroller Alan Hevesi, is affiliated with a slew of companies - including several using the address of his East Hampton home and one in the British Virgin Islands - that received pension-fund fees and were the subject of an investigation.
Democrat Morris listed the five firms on a report filed with the Financial Industry Regulatory Authority, the largest nongovernmental regulator of US securities firms.
Four of the firms - Nosemote LLC, Pantigo Emerging LLC, PB Placement LLC and Purpose LLC - share Morris' East Hampton home address. Morris listed himself as the "sole member" of Nosemote, Pantigo Emerging and PB Placement, and said that Nosemote makes up half the members of Purpose.
For the fifth firm, Athena Capitol Advisors Ltd., which has an address in Tortola, British Virgin Islands, Morris lists himself as a 50% owner, vice president and treasurer.
According to Morris' filing, all the entities "act as intermediaries between money [managers] and institutional investors to facilitate introductions and resulting investments."
When one con artist can pay $16 million to two others for something he says he didn’t do, well, it must have been a truly lucrative scam.
Let’s see, guy steals 150 mil; returns 10 mil. while admitting no wrong doing.
What’s next Guv elect Cuomo and thief go on tour taking bows for scamming the public?
Thanks! At least someone is keeping track.
Just me and the Man upstairs. :)
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