Former Chief Investment Officer Pleads Guilty to Corruption in Connection to N.Y. State Pension
Loglisci was charged in March 2009 for breaching his fiduciary duty.
March 11, 2010 at 07:00 PM
2 minute read
The original version of this story was published on Law.com
David Loglisci, former chief investment officer for the New York state pension fund, pleaded guilty March 10 to corruption and a violation of the state's general business law in relation to the fund. The retirement fund–the third-largest in the U.S.–was recently valued at $126 billion.
Loglisci was charged in March 2009 for breaching his fiduciary duty by giving authority to Hank Morris, former comptroller Allan Hevesi's political adviser. New York Attorney General Andrew Cuomo said Loglisci admitted to breaching his fiduciary duty and violating the public trust by allowing Hevesi to make investment decisions for the benefit of the comptroller.
Loglisci, who agreed to cooperate with Cuomo according to a plea agreement, was the sixth person convicted of fraud in the fund and could face a sentence of up to four years.
Loglisci was charged in March 2009 in a 123-count indictment, along with Morris, and was accused of enterprise corruption, official misconduct, and securities fraud, among other things. Loglisci did not benefit financially from the deals, but some of the equity firms did invest in a film that Loglisci's brother produced. Morris is said to have received more than $25 million in pension-related fees during the four years that he was Hevesi's political adviser.
In December 2006 Hevesi pleaded guilty to defrauding the government and agreed to resign from office for using state employees as drivers and personal aides to his disabled wife.
When he was indicted, his attorney, Irv Seidman, said that under Loglisci, the pension fund assets doubled from $90 billion to $180 billion.
Source: To read more about this story, click here: http://www.businessweek.com/news/2010-03-10/loglisci-pleads-guilty-in-pension-probe-court-document-shows.html
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