Steven Rattner, a co-founder of the private-equity firm Quadrangle Group Llc, will pay $10 million to settle a probe of corruption at New York State's pension fund, in a deal that largely ends a three-year investigation that has yielded eight guilty pleas.
Rattner's restitution is less than half of the $26 million state Attorney General Andrew Cuomo sought. Rattner also agreed to be banned from appearing before any public pension fund in the state for five years, the attorney general's office said yesterday in an e-mailed statement. Cuomo, New York's governor-elect, sought a lifetime ban from the securities industry.
"I am gratified that we have been able to reach an agreement in this case, as it resolves the last major action of our multiyear investigation," Cuomo said in the statement.
Rattner, 58, former head of the U.S. government's Automotive Task Force, said in the same statement he was "pleased to have reached a settlement."
"I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult," he said. "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."
Rattner, who is no longer with Quadrangle, caused the New York-based firm to pay kickbacks to obtain $150 million in investments from the pension fund, according to Cuomo's civil securities-fraud suit.
The financial adviser last month settled a parallel probe with the U.S. Securities and Exchange Commission for $6.2 million and a two-year ban from associating with broker-dealers or investment advisers.