SEC Putting More Focus on Aldus in NY Pension Probe

The Wall Street Journal reports that Aldus, based in Dallas, is one of the funds named in the SEC’s earlier complaint in the case as having made payments in exchange for investments from the New York fund. Aldus also served as an adviser to the pension fund on private equity investments, the complaint said.

The SEC along with the New York Attorney General in March charged David J. Loglisci, the state’s former deputy comptroller, and Hank Morris, a political adviser, with orchestrating a scheme to take kickbacks from investment firms in exchange for receiving money from the state pension fund (see Former NY Common Fund CIO Charged by SEC ). Both men have denied the charges.

In 2004, Aldus also received a $375 million investment from the New York fund to manage an emerging markets portfolio for the state, and agreed to pay a finders fee to Morris, the SEC complaint says, according to the WSJ.

The SEC request comes after New Mexico Governor Bill Richardson on Wednesday asked the state’s investment arm to fire Aldus from advising the state on its private equity investments, due to concerns raised by the firm’s involvement in the New York pension fund investigation. Another firm involved in the New York pension fund probe, Quadrangle Group, has been reported to also have ties with the New Mexico fund (see Auto Czar Also Indicated in NM Pay-to-Play).

Aldus is also being looked at in a probe of a Los Angeles pension fund (see  SEC Pension Probe Extended to L.A. Fund).