May 1, 2009
Cuomo and Other States Form Task Force on Pension Fund Abuse
New York Attorney General Andrew Cuomo announced the creation of a multi-state task force to explore pension fund abuse so that states can share information to prosecute wrongdoing and facilitate nationwide reform.
His office also announced that it has issued subpoenas to over 100 investment firms and their agents in its expanding investigation into corruption and kickback schemes involving the New York State and City pension funds. Today’s announcement stems from the Attorney General’s broadening investigation into individuals and companies who make or receive improper payments in connection with lucrative business opportunities with state and city pension funds. Under state and federal law, securities brokers are generally required to be licensed and registered with a broker-dealer in order to protect the investing public from unscrupulous and unqualified brokers. In occasional cases, a registered broker is not required. But, after Cuomo’s investigation found that 40 to 50 percent of agents obtaining investments from New York pension funds were unregistered, his Office issued subpoenas.
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