Democrat Pension Scandals: Nationwide Corruption

In New Mexico, Governor Richardson, embattled by his own scandals is now pushing " reforms" so as to get in front of this pension disaster. In New York AG Cuomo is moving ahead with hundreds of subpoenas as the Nationwide implications of this grow by the day. The pension scheme, which broke into the headlines. Of course Obama auto appointee Steve Rattner and his company the Quadrangle Group can be found front and center. Other characters include Alan Hevesi, now disgraced former NY Comptroller, as well as Hank Morris. Morris who has strong connections to Charles Schumer (He ran his 1998 Senate campaign) is now facing 123 counts of corruption and bribery charges for turning New York's 122 billion dollar pension fund into a criminal enterprise. Basically he and his associates would steer pension investments to groups that would "hire" him or his associates. In short, a kickback scheme.



First New Mexico:

The governor’s action Thursday comes as yet another response to a scandal that appears to be only growing.

The scandal exploded into the public earlier this month when it was revealed that a third-party agent in two New Mexico investment deals, Henry “Hank” Morris, had been indicted in a corruption scandal in New York. Morris, a former aide to the New York comptroller, was among those indicted as investigators examine “millions of dollars in payments that several hedge funds and private equity firms paid to placement agents” — often called third-party marketers — during the tenure of former Comptroller Alan Hevesi.

Earlier this month New Mexico suspended business with Aldus Equity, which has served as an adviser on national private equity funds and is involved in a pay-to-play scandal in New York. On Wednesday, Richardson ordered the state’s investment officer, Gary Bland, to initiate termination of Aldus Equity Partners’ relationship with the state.

That action came after it was learned that the FBI had questioned officials from two state investment agencies about Aldus Equity. The Associated Press reported on the FBI’s interest last week.

The federal agents met earlier this month with officials from the State Investment Council (SIC) and Educational Retirement Board (ERB) about the firm, the news service reported.

Asked if there were inappropriate relationships between Aldus Equity and some of the third-party agents involved in New Mexico investments, Gallegos told KUNM on Thursday, “At this point it is a big question of ours. There have been a number of allegations in a court case in New York.”

New York:

New York State’s pension system offers an open invitation to political corruption and is desperately in need of reform. On Thursday, Attorney General Andrew Cuomo charged Saul Meyer, a founding director of Aldus Equity Partners, with agreeing to pay about $300,000 in illegal kickbacks to Hank Morris, a top political adviser to Alan Hevesi, the former New York State comptroller.

This was the latest arrest in what Mr. Cuomo has called an “ongoing scam” involving kickbacks from investment companies to politicians for steering lucrative state pension money their way.

Mr. Meyer, Mr. Morris and the others charged so far have said they are not guilty. And the payment of placement fees to a middleman is not illegal unless prosecutors can prove it is a de facto bribe.

But James Clarkson, the regional director of the Securities and Exchange Commission, which lodged charges against Aldus and Mr. Meyer, said that the firm had managed to get hundreds of millions of dollars in New York pension fund business largely because of its “willingness to illegally line the pockets of others.” The complaints outline how Aldus was chosen as an investment manager after another firm was rejected because of its refusal to pay kickbacks.

And to think, the Democrat Culture of Corruption with the Muni-Bond Scandal is a whole other can of worms. Although the same tactics of politicans, consultants, and companies abusing the public trust for enrichment is the same.

More From National Review:

Keeping an eye on the ever-expanding public-pension-fund scandal, there was another arrest today:

Attorney General Andrew M. Cuomo today announced the arrest of a founding partner of a Dallas-based firm that advises public pension systems across the nation for his alleged involvement in a pay-to-play kickback scheme at the New York State Office of the Comptroller.

Saul Meyer, a founding partner of the Dallas-based Aldus Equity, was charged with Martin Act securities fraud for allegedly paying illegal kickbacks to Hank Morris, the top political adviser to former New York State Comptroller Alan Hevesi, in exchange for business with the state Common Retirement Fund (CRF).

Texan Saul M. Meyer was not a big giver to political campaigns, but in 2001, he gave $1,000 to the then-mayor of Dallas, Ron Kirk, who was preparing to challenge Republican John Cornyn for the Senate seat of the retiring Phil Gramm. Kirk is now the U.S. Trade Representative.

In 2003, he gave $2,000 to Democratic senator John Kerry of Massachusetts. In 2005, he contributed $1,000 to Democratic senator Evan Bayh of Indiana. In 2007, he made his first and apparently only contribution to a Republican, Rudy Giuliani, the maximum $2,300.