Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Thursday, December 30, 2010

Rattner Settles New York AG Charges for $10 Million and 5 Year Ban

New York AG Cuomo today announced an agreement with Steven Rattner, former founding principal of private equity firm Quadrangle Group, LLC (“Quadrangle”) in the Attorney General’s public pension fund investigation.  Mr. Rattner will pay $10,000,000 in restitution to the State of New York and be banned from appearing in any capacity before any public pension fund within the State of New York for five years. The agreement today will end the two lawsuits previously filed against Mr. Rattner by the Attorney General’s Office in New York State Supreme Court relating to the circumstances surrounding $150 million in investments in Quadrangle from the New York State Common Retirement Fund (“CRF”).

You may remember that when the charges were announced in November, Mr. Rattner (President Obama's former Car Czar) proclaimed that he would not be bullied by the AG.  In contrast, today Mr. Rattner stated: “I am pleased to have reached a settlement with the New York Attorney General’s Office, which allows me to put this matter behind me. I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult. I respect the work of the Attorney General and his staff to ensure that the New York State Common Retirement Fund operates properly and in the best interests of New Yorkers.”

With today’s agreement, Cuomo’s investigation has secured agreements with nineteen firms and five individuals, garnering over $170 million for New York and the pension fund. The investigation has led to eight guilty pleas, including pleas by former Comptroller Alan Hevesi, his chief political consultant, and his Chief Investment Officer.

http://lawprofessors.typepad.com/securities/2010/12/rattner-settles-new-york-ag-charges-for-10-million-and-5-year-ban.html

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