Two Arrested in State Pension Scam

2009_03_penscam.jpg A political consultant who used to work with Senator Schumer and former State Comptroller Hevesi and a former deputy State Comptroller were charged with 123 counts of enterprise corruption for allegedly taking over $30 million in state pension fund fees. NY1 reports that Hank Morris, the consultant, "is believed to have pocketed millions in middleman fees from financial firms that won business with the pension fund during Hevesi's tenure." The NY Post further explains that companies that won business from the state pension fund "paid a little-known Connecticut financial firm called Searle & Co. 'placement fees' - 95 percent of which went to Morris, officials said." David Loglisci, who used to work for Hevesi, was also charged.

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Comments (6) [rss]

Corruption and scams still going strong.

are "placement fees" ever legitimate? and if not, can we go after the companies who paid them as well?

I think what upsets me is that these folks were hurting hard working state employees while leaching off the pension funds which are in very dire straights right now especially while we are in a budget crisis.

G.D. Searle & Company ?? Where Donald Rumsfeld's was that had ties back to AIG's CEO which gave out huge bonuses?

Now I just connected the dots.

Searle & Co.

333 Greenwich Ave.
Greenwich, CT
06830

Different Searle & Co. Appears to just be a financial firm akin to Bernie Madoff Investment.

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