A political consultant swept up in Attorney General Andrew Cuomo’s pension fund probe has reached a plea deal with prosecutors, officials announced today.
Longtime political adviser Hank Morris, the alleged mastermind of the massive pay-to-play scheme that wracked one of the world’s largest public pension funds, was awaiting trial on charges that he corrupted the investment process on behalf of money managers who made campaign contributions and for politically-connected placement agents who received lucrative fees, including himself.
But a judge said he needs more time to think the deal over.
“The court is not willing to consider this on such short notice,” New York State Supreme Court Justice Lewis Stone said of the deal at a hearing. “In a matter as weighty as this, the court wants an opportunity to consider the papers.”
At least seven people, including former State Comptroller Alan Hevesi, have pleaded guilty in connection with the probe. Sixteen firms have settled and paid more than $139 million to the fund and the state.
Morris’ plea followed news last month that Quadrangle Group LLC co-founder Steven Rattner was nearing a settlement with the US Securities and Exchange Commission, Rattner, 58, has been the subject of state and federal investigations of corruption at the fund.
He is accused of paying Morris more than $1 million in sham “finder” fees, according to Cuomo and the SEC.
In exchange, Quadrangle, a New York-based private-equity firm, obtained $100 million in investment commitments from the New York state Common Retirement Fund, according to Cuomo.