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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

By Rob Quinn,  Newser Staff

Posted Apr 17, 2009 5:52 AM CDT
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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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COMMENTS
Showing 3 of 7 comments
Derni
Apr 17, 2009 12:23 PM CDT
A goodman is hard to find-But we're still doing better than thge Republicans-are they still a political party?
nick
Apr 17, 2009 11:46 AM CDT
Another six-degrees-of- separation story by Rupert Murdock's Conservative Rag Totally useless partisan journalism, aimed at discrediting the Obama administration.
riffran
Apr 17, 2009 11:09 AM CDT
pheww...I thought it was going to be another tax cheat story

Rattner linked to shady pensions deal
New York Times

Probe likely to cause Obama headaches
Politico

 
private equity • corruption • SEC • kickbacks • Steven Rattner

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