Hank Morris, the top aide to former state comptroller Alan Hevesi, pleaded guilty to securities fraud yesterday. It is the final guilty plea in the massive state pension fraud scandal which saw Hevesi, Morris and six others steer business to investment firms who would give them fees or favors in return. Morris said in court, "I intentionally engaged in fraud, deception, concealment, suppression, false pretense and fictitious and pretended purchase and sale and made material false representations and statements with intent to deceive and defraud." more ›

Today Brooklyn DA Charles Hynes announced two indictments against three people charged with scamming the Authority out of more than $150,000 in two separate schemes carried out over the course of four years. The ringleader, according to prosecutors, was Jacqueline Jackson, 51, the head of the Legal Support Unit in NYC Transit's Law Department. "Jacqueline Jackson, whose job it was to save taxpayers money by fighting frivolous lawsuits against the NYCTA, cost those taxpayers money, by stealing from the very agency that hired her," Hynes said, telling reporters, "These schemes make my head hurt. You think of all the things they could have done if they used their genius for good." more ›

Attorney General Andrew Cuomo's investigation into the state and city pension funds—and how placement agents have been getting kickbacks for getting investment firms their business—is casting a wider net: Yesterday, his office issued subpoenas to 53 firms and 49 placement agents who are not licensed and registered as broker-dealers. Using an unlicensed agent could violate state and federal securities laws. Cuomo said, "The troubling pattern of unlicensed agents highlights yet another systemic weakness in New York’s pension fund, creating a situation which is fraught with peril and prone to abuse," and others states' pension funds are undergoing similar scrutiny. He is also concerned that politicians and lobbyists (who aren't registered) are trying to match up investment firms with pension funds; for instance, he has subpoenaed Patricia Lynch, a former top aide to Assembly Speaker Sheldon Silver. Silver told PolitickerNY, "Ms. Lynch left my employ in 2000. Nine years ago. So I think there's a statute of limitations. I have not spoken to her about this or any of the other events, so I have no idea except for what I read in one of the daily newspapers today." more ›

The trouble is just starting for private equity firm Quadrangle. Last week, it was revealed the firm's founder—and current White House auto bailout chief—Steve Rattner allegedly paid $1 million to a middleman to be included in the state's pension fund. Now it appears the investigation is heating out up over his attempts to have Quadrangle included in other pension funds—like those of New Mexico, LA and NYC. Apparently Quadrangle paid middleman/placement agent fees to the firm of Hank Morris, already indicted in state pension fund scandal, to drum up business—the NY Times reports that after a meeting with the NYC Comptroller's office, "Mr. Rattner left the meeting irritated that his own considerable connections did not seem to be enough. He soon hired Mr. Morris." City Comptroller Thompson's office is now investigating over whether Quadrangle lied about not naming Morris as a placement agent. (Also, Morris was also former State Comptroller Alan Hevesi's political consultant/top fundraiser!) To that end, the State Comptroller Thomas DiNapoli has banned placement agents from the pension fund, but a NY Times editorial suggests that the Legislature needs to create an independent body that watches the investments the State Comptroller makes. more ›