NEW YORK (Reuters) – More than 20 investment deals made by New York state’s pension fund were “tainted” by a kickback scheme, and five of the investments involved The Carlyle Group, a giant private equity fund, state Attorney General Andrew Cuomo said on Thursday.
Cuomo charged the kickbacks were paid to Henry Morris, the chief fund-raiser for former state comptroller Alan Hevesi and the pension fund’s chief investment officer. Both men are accused of having received fees from companies seeking to invest the pension fund money as part of a 123 count-indictment.
New York state comptrollers are the pension fund’s sole trustee.
Morris and his partner got more than $13 million in “sham placement fees” from five investments totaling $730 million that involved The Carlyle Group, Cuomo said in a statement. (Reporting by Joan Gralla; Editing by Leslie Adler)