Steve Rattner, the former car czar and founder of Quadrangle Group, just got run over by his former firm.
After settling this morning with Andrew Cuomo and the SEC., Quadrangle issued a statement saying “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.” Damn that’s harsh.
The firm agreed to pay $7 million to the Attorney General and $5 million to the SEC. Mr. Rattner was not part of the settlement, but he sure is part of the case. Referring to him as a “former Quadrangle executive,” the SEC says in its complaint that Rattner secured a $100 million investment from the New York State Common Retirement Fund by agreeing to help distribute a low-budget straight-to-DVD movie called “Chooch,” produced by former deputy comptroller David Loglisci and his brothers. Rattner also agreed to pay $1 million in “sham” finder fees to Morris, the top political adviser and chief fundraiser for former New York comptroller Alan Hevesi, according to the allegations.
On March 19, 2009, Morris and Loglisci were charged with 123 counts of bribery, grand larceny, money laundering and fraud for taking kickbacks from investment firms for access to the pension fund. Carlyle Group and other firms have already reached settlements regarding their participation in the scheme. Loglisci has pleaded guilty and is cooperating with the investigation. Hevesi has not been charged with anything yet, but sources said he expects to be indicted “any day now.”
It’s unclear what, if anything, will happen to Rattner. Dan Primack of PEHub.com live-blogged Cuomo’s press conference. Rattner has, ironically, been working out of the General Motors building in Manhattan, where he has an office within the office of Thomas H. Lee Capital. He is currently working on a book called “Overhaul” about his time as car czar.
Update: A lawyer for Rattner tells the New York Times:
“Mr. Rattner does not agree with the characterization of events released today, including those contained in Quadrangle’s statement,” Mr. Gorelick said in his statement. “Mr. Rattner shares with the New York attorney general the goal of eliminating public pension fund practices that are not in the public interest. He looks forward to the full resolution of this matter.”
ZachKouwe:
I’m impressed. I showed your face to my kids and they in unison said that you are bovine game console called CowWii. They were real upset that you would change your name. Now I have to console them, you bastard.
Zach,
Embrace the Kouwe = shit meme. The headline of this article should have been “Quadrangle Group Drops a Kouwe on Rattner”.
Zach,
Tag should read, “oh no you di’int.” Stop embarrassing Bess. Other than that, you’re getting slightly better.
-Cracked Screen
That last tag would be so much more awesome if rampant plagiarism and horrendous writing were felony offenses…
Is a Kouwe Show the same thing as a Donkey Show?
-Silent Slob
Its just shocking that a czar in Obama’s administration is a liberal asshole who ignores the laws when it benefits him. I am just happy we have stand up guys like Timmy G and the SEIU’s Andy Stern and groups like Acorn to balance out this sleaze. Otherwise this would be one disgraceful president.
TL;DR EP
I am Zach’s colon and I have a steamy one brewing right now.
Anal_yst: I think you should take over Zach’s day job.
That last line about Rattner working out of T.H. Lee’s office is interesting. Now let’s keep in mind that my friend at the NY Post who worked with Zach says T.H.Lee is his biggest best buddy source. So why doesn’t Zach get a real comment out of T.H.Lee on what he thinks of his office buddy paying kickbacks to get investment money for his fund.
Shut the fuck up, Kouwe
@9 = Bess Levin
“Do you remember Krakatoa?”
Idiot.
Zach, stop plagiarizing. I read about this 2 months ago in the Village Voice.
anyone want to guess what the Post or Daily News headline will be for the story covering the Senate Agriculture Committee Chairman Blanche Lincoln’s proposal to wall off derivatives trading from their commercial banks?
I’m guessing something along the lines of “Lincoln Supports Segregation!”
There’s more than one way to spell “Jackass.” K O U W E
In polite society, one picks up their dog’s Kouwe off of the sidewalk.
@14 Nice.
Damn, what a group of little bitches!
@14 FTW. Rattner should never have left Lazard
Kouwe jokes are getting pretty fucking old.
Shut up Kouwe
Tags: “oh no you didn’t” and “oh snap”?
Looks like Kouwe just got “run over” by 1995. Try harder next time.
Zach’s entire output of work today was summarizing two articles from the Wall Street Journal and adding absolutely nothing to them. Great job, kid!