P&A Providers & Administrators
MenuMENU
SearchSEARCH

SEC Delays Vote on Deal for Rattner

October 15, 2010
3 min to read



The Securities and Exchange Commission on Thursday delayed a vote on a deal to end a pension fraud probe involving ex-auto czar Steve Rattner, The Detroit News reported.


The deal under consideration would reportedly include a $6 million fine and ban Rattner from serving in the financial industry for two years.

Ad Loading...


The deal also would reportedly allow him to continue to advise New York Mayor Michael Bloomberg, according to published reports.


The settlement is on hold as Rattner continues to work out a deal with New York State Attorney General Andrew Cuomo on a separate investigation.


Rattner declined to comment Thursday.


At issue is a "pay-to-play" scandal where Rattner paid a hefty "finders fee" to land an investment from the $129 billion New York State Pension Fund.


Rattner's investment firm, Quadrangle Group LLP, paid $1.1 million to Hank Morris, a former top political consultant to ex-New York Comptroller Alan Hevesi, according to Cuomo's investigation. Rattner reportedly met with Morris.

Ad Loading...


Quadrangle then received an investment of $100 million from the state pension fund. Quadrangle settled a probe of the firm in April for $7 million and reproached Rattner as part of a settlement with Cuomo.


Rattner left the firm in February 2009 to oversee the Obama administration's restructuring of the auto industry and left the auto task force in July 2009.


"We wholly disavow the conduct engaged in by Steve Rattner, who hired the New York State Comptroller's political consultant, Hank Morris, to arrange an investment from the New York State Common Retirement Fund. That conduct was inappropriate, wrong and unethical," the firm said.


Quadrangle called reforms proposed by Cuomo "vitally necessary to eliminate pay-to-play practices from the public pension fund investment process.We urge others in the industry to follow."


Quadrangle retained Morris as a placement agent to increase to $100 million from $25 million an investment Quadrangle was seeking from the pension fund.

Ad Loading...


In the middle of the investment decision-making process, Quadrangle also arranged a DVD distribution deal for a low-budget movie, "Chooch," that was produced by the brother of then New York pension fund Chief Investment Officer David Loglisci.


Hevesi, 69, pleaded guilty to a second-degree charge of receiving reward for official misconduct.


He resigned as state comptroller in 2006.


Peter Henning, a Wayne State University law professor and former SEC attorney, said Rattner is trying to put the matter behind him.


"Two years is not crippling, but this is a stain on his reputation," he said.

Ad Loading...


Rattner is worth an estimated $188 million to $608 million and is on a book tour to tout his memoir "Overhaul."


In his book, Rattner described the episode as wrenching.


"During my 35 years in the working world, I had never been accused of so much as jaywalking," Rattner said. "It was painful for me and my family to have my honesty and integrity impugned, often by innuendo."


Rattner, a former New York Times reporter, is set to appear at the Detroit Economic Club to discuss his book on Oct. 26.


More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →