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Auto Czar Leaves Washington Amid Pay-to-Play Probe Involving Former Firm
The peculiar timing of Steven Rattner's departure as White House car czar has raised questions about the course of an investigation that has scrutinized his possible dealings with the New York state pension fund. The probe into pay-to-play schemes, part of a long-running and wide-ranging investigation by the Securities and Exchange Commission and New York Attorney General Andrew Cuomo, reportedly has intensified as Cuomo's office seeks additional documents from a firm Rattner co-founded. "Obviously he's been a player" in the probe, said a source familiar with the investigation. The source confirmed to FOXNews.com that Cuomo has sought documents from Rattner's former firm, Quadrangle Group, though it's unclear when the most recent requests were made. The Treasury Department announced Monday that Rattner was quitting as counselor to the treasury secretary, a post that made him head of a task force with a broad mandate to manage the bailout of General Motors and Chrysler Group. The Wall Street Journal reported Tuesday that Cuomo's office had stepped up its scrutiny of both Quadrangle and Rattner. That's after an SEC complaint in April detailed a "transaction" in which Quadrangle struck a deal worth $100 million with the state pension fund after a "senior executive" of the firm met with a former official under then-Comptroller Alan Hevesi. The complaint said the firm paid more than $1 million as part of the deal. The Journal reported in April that the "senior executive" was Rattner. Though two former officials in the comptroller's office -- David Loglisci, the former chief investment officer, and Hank Morris, a former adviser to the comptroller -- have been indicted on corruption charges, Rattner has so far not been accused of wrongdoing. Not yet. Posted by: ed 2009-07-15 |
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