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FRIDAY, NOVEMBER 27, 2009
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Rattner, Obama's Auto Chief, Caught Up in Kickbacks Probe

Source says Rattner linked to pension fund pay-for-play deal

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(Newser) – Steven Rattner, the head of President Obama's auto task force, is involved in an SEC probe of a kickback scandal involving New York state's pension fund, a source tells the Wall Street Journal. Rattner is not accused of any wrongdoing, but is believed to have directed a $1.1 million payment from his private equity firm Quadrangle to an intermediary who steered an investment of $100 million from the fund Quadrangle's way.

The SEC alleges that a Quadrangle executive—who the source says was Rattner—also arranged for the firm to invest $90,000 in Chooch, a low budget-film being made by the deupty comptroller's brother-in-law, shortly before Quadrangle received the pension investment and paid the "finder's fee."  Both the comptroller, Alan Hevesi, and his producer-brother-in-law have been indicted for bribery and money laundering. A Treasury spokeswoman said Rattner had informed them of the ongoing probe during the transition period.

Steven Rattner, seen here in a 2006 file photo, is involved in an SEC probe of improper payments in exchange for investments from New York's pension fund.
Steven Rattner, seen here in a 2006 file photo, is involved in an SEC probe of improper payments in exchange for investments from New York's pension fund.   (Getty Images)
Steven Rattner, seen here with Tony Bennett in a file photo, founded Quadrangle, a private equity firm involved in an SEC kickbacks probe.
Steven Rattner, seen here with Tony Bennett in a file photo, founded Quadrangle, a private equity firm involved in an SEC kickbacks probe.   (Getty Images)
NEW YORK - JUNE 13: Steven Rattner (L) and Charlie Rose arrive for the WNET and WLIW 13th annual gala at Gotham Hall June 13, 2006 in New York City.
NEW YORK - JUNE 13: Steven Rattner (L) and Charlie Rose arrive for the WNET and WLIW 13th annual gala at Gotham Hall June 13, 2006 in New York City.   (Getty Images)
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During the transition, Mr. Rattner made us aware of the pending investigation. - A Treasury spokeswoman

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9 comments
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riffran
Apr 17, 09 6:09 AM CDT
pheww...I thought it was going to be another tax cheat story Reply
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nick
Apr 17, 09 6:46 AM CDT
Another six-degrees-of- separation story by Rupert Murdock's Conservative Rag Totally useless partisan journalism, aimed at discrediting the Obama administration. Reply
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northeast
Apr 17, 09 8:01 AM CDT
Wow, look at the link they give! Looks like the NYT reported it too! I knew that conservative paper was up to its old right-wing hit pieces...
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Derni
Apr 17, 09 7:23 AM CDT
A goodman is hard to find-But we're still doing better than thge Republicans-are they still a political party? Reply
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psycada
Apr 17, 09 8:23 AM CDT
Hevesi? That slime ball surfaced? Who the hell gave him a job after being fired as New York State Comptroller for corruption and $800,000 in kickbacks? Anyone doing business with him now for sure cannot be honorable. Derni: Don;t be too sure of yourself. Dems have only had control for 2 months and sure can eff this up a lot more with they time they have left. So be carefuly in making these claims before allowing the Dems the same amount of time the republicans had to eff it all up. (besides, Clinton, a democrat, repealed the Glass-Steagall act, the catalyst to the bank collapse) Reply
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