New York State Attorney General Andrew Cuomo and Albany District Attorney David Soares first announced suspicions in July that the former comptroller’s son, Daniel, could have benefited from pension investments (See Hevesi’s Sons and Cronies Engulfed in Pension Fund Probe). In particular, they were looking into whether a decision by the comptroller’s office to invest pension money in hedge fund Third Point Capital in 2005 was linked to the hedge fund’s decision to hire Hevesi’s son a few months later.
The subpoena, however, was for financial records from Praetorian Securities, which Daniel owns. Particularly, they want to know whether the securities firm unfairly benefited from New York pension money.
Hevesi stepped down from his position as comptroller last year, amid allegations that he abused resources by having state employees chauffeur his wife and help with personal chores (See Hevesi Missteps Could Trigger Removal – Eventually ). He pleaded guilty to a felony, but skirted any jail time. And in May, Cuomo started the probe into whether officials in the state comptroller’s office used their clout to sway the decisions of the state’s $150 billion pension fund (See NY Comptroller Being Probed Over Conflict-of-Interest Activities).
Daniel Heveis recently hired a criminal defense lawyer, Laura A. Brevetti, who said that her client would cooperate with the subpoena and that he had done nothing improper, according to the Times.
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