Administration March 19, 2009

Former NY Common Fund CIO Charged by SEC

March 19, 2009 (PLANSPONSOR.com) - The U.S. Securities and Exchange Commission (SEC) on Thursday charged the political adviser to New York state's former comptroller for "corrupting the integrity" of the state's Common Retirement Fund by taking kickbacks from companies seeking to manage its money.
Reported by

Reuters reports that former comptroller Alan Hevesi’s political adviser and chief fund-raiser, Henry Morris, was charged, along with David Loglisci, who was the pension fund’s chief investment officer from 2003 to 2006, according to a copy of the SEC’s complaint.

The Associated Press said each face 123 charges, including enterprise corruption, securities fraud, grand larceny, bribery and money laundering. Both pleaded not guilty at their arraignment Thursday in Manhattan.

The charges came after a two-year investigation by the state attorney general’s office, which said the probe is continuing, according to the AP. Hevesi was not charged.

“The defendants’ scheme corrupted the integrity of the Retirement Fund’s investment processes and resulted in retirement funds being invested with the purpose of enriching the defendants,” the SEC said, according to Reuters.

The complaint also charges “certain entities controlled by Morris.” Three firms listed as defendants in the complaint are: Nosemote LLC, Pantigo Emerging LLC, and Purpose LLC.

New York ‘s current comptroller, Thomas P. DiNapoli has been moving forward with a compliance review of the Common Retirement Fund (see NY State Retirement Fund Moves Forward on Compliance Review ).

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