The Carlyle Group will pay a $20 million settlement and adopt strict new ethics rules to appease New York Attorney General Andrew Cuomo, the Wall Street Journal reports. Cuomo had threatened to bring charges against the group or its employees as part of his pay-to-play probe into New York’s pension system. As part of the settlement, Carlyle will accept strict restrictions on campaign contributions to pension officials.
It has also agreed to no longer employ “placement agents,” lobbyists who bid for pension business. Carlyle says it hopes the agreement will “set a new standard for ethics in the industry.” It is still being investigated by the SEC. Cuomo hopes the settlement will pressure the whole industry to change. “People have grown to accept a certain level of corruption,” he said. “We want to stop politically connected brokers who are just selling access.”