Thursday, December 9, 2010
The SEC barred former Car Czar Steven L. Rattner (who served as managing principal of Quadrangle Group LLC from 2000 until March 2009 and managing principal of Quadrangle Securities LLC, which was a registered broker-dealer from 2000 through 2006, and Quadrangle Equity Management LLC, which was a registered investment adviser in 2006) from association with any broker, dealer or investment adviser with the right to reapply after two years. The bar follows from the federal district court's recent final consent judgment against Rattner which, inter alia, permanently enjoined him from violating Section 17(a)(2) of the Securities Act of 1933. The SEC had filed a complaint against Rattner alleging that Rattner violated Section 17(a)(2) by entering into an undisclosed “pay-to play” arrangement in order to secure an investment from the New York Common Retirement Fund (“Retirement Fund”) for Quadrangle. Securities and Exchange Commission v. Steven L. Rattner, Civil Action No. 10-CV-8699.