Cuomo Issues New Subpoena To Quadrangle While Rattner Negotiations Continue

We finally have some news on Steve Rattner’s long awaited settlement with New York Attorney General Andrew Cuomo.

Cuomo, who recently won his bid for governor, has issued a new subpoena to the Quadrangle Group for information about Rattner’s compensation and the financial terms of his departure, according to the New York Times.

The subpoena comes after Rattner rejected a settlement last month with Cuomo where he would have had to pay a $20 million penalty, the NY Times says. Rattner and his lawyers have claimed that the $20 million is “disproportionate” to the money he earned at Quadrangle and to the penalty other executives caught up in the pay-to-play scandal have had to pay. Rattner’s negotiations with Cuomo continue, the NY Times says.

While Rattner may not have a deal with Cuomo, the Quadrangle co-founder apparently does have one with the SEC. This settlement includes a multi-year ban and a $6 million payment, the NY Times says. But the agency is holding off announcing the deal so Cuomo can resolve his case.

Cuomo has been investigating the “pay to play” practices at the New York Common Retirement Fund for the past three years. Alan Hevesi, ex-New York Comptroller, was sole trustee of the fund, which is valued at $124.8 billion. Cuomo has charged that the fund became “a piggy bank” for Henry “Hank” Morris, former adviser to Hevesi, who reaped millions of dollars in fees from individuals and firms seeking to invest the state’s money, Reuters has said.

Rattner is still negotiating with Cuomo but others involved in the pension fund scandal have come to terms with the NYAG. Morris earlier this month agreed to plead guilty to a single felony. Morris had been charged last year in a 123-count indictment. Hevesi, in October, also pleaded guilty to a single charge of felony corruption.

Rattner’s firm, the Quadrangle Group, has admitted paying Morris $1.1 million. In return, Quadrangle obtained a $100 million in investment commitments from the New York State Common Retirement Fund. Quadrangle, in April, agreed to pay $12 million to settle allegations.