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AG announces pension-fund settlements

Mon, Apr 19th 2010 12:00 am
The state Attorney General's office said Thursday it has reached settlements with multiple parties in an ongoing investigation of the state's public pension fund.

Under the agreements, Quadrangle Group LLC will pay $7 million; GKM Newport Generation Capital Services LLC will pay the equivalent of $1.6 million; political-consulting firm Global Strategy Group CEO Jon Silvan will pay $2 million; California lobbying firm Platinum Advisors will pay $500,000; and unlicensed placement agent Kevin McCabe will pay $715,000.

Along with the nearly $12 million that will be repaid to the state, the AG's office said, the parties will comply with the New York's Public Pension Fund Reform Code of Conduct.

The settlements with Quadrangle and GKM involve fees paid to Henry "Hank" Morris, ex-Comptroller Alan Hevesi's paid political adviser, to arrange investments from the New York State Common Retirement Fund, the biggest pool of money in the state and the third-largest pension fund in the country.

The pension fund was most recently valued at approximately $129 billion.