Kudos to Cuomo

14 May 2009 By Richard Beales Follow @richardbeales1

The LBO firm isn t implicated in New York s paytoplay scandal. But it has agreed to pay $20m, sworn off middlemen when pitching pension funds and signed up to a new code of conduct. The attorney general may reform behaviour nationwide the way Spitzer did with research.

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Andrew Cuomo, the New York attorney general, on May 14 announced an agreement with the Carlyle Group over the pay to play corruption scandal involving the New York State public pension fund. Carlyle, which wasn't accused of wrongdoing, will pay $20m to the state and sign a code of conduct, among other things banning the use of socalled placement agents to solicit investments from public pension firms.

Cuomo has alleged that the former chief investment officer of the state's Common Retirement Fund, David Loglisci, and a top political adviser, Hank Morris, were part of a kickback scandal involving placement agents in private equity fund raising.

Barrett Wissman, a hedge fund executive, pleaded guilty to securities fraud and is cooperating with Cuomo's investigation. Wissman received millions of dollars in fees for acting as a middleman between the CRF and various investment firms.

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Kudos to Cuomo

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