Texas Firm Charged in Kickback Case

Pension 'pay to play' scheme had tentacles in many states: Cuomo
By Kevin Spak,  Newser Staff
Posted May 1, 2009 9:22 AM CDT
Texas Firm Charged in Kickback Case
In this Dec. 11, 2008, file photo, New York Attorney General Andrew Cuomo speaks in Albany, N.Y.   (AP Photo/Mike Groll, File)

New York Attorney General Andrew Cuomo and the SEC brought criminal charges yesterday against Saul Meyer, founder of Aldus Equity Partners, saying the firm had been involved in a “pay to play” scheme to manage part of New York’s pension scheme. And that’s just the tip of the iceberg, said Cuomo, adding that his investigation had turned up a “national network of actors," reports the Wall Street Journal.

Cuomo says he’s now working with law enforcement in several states, including California, New Mexico, Connecticut, and Illinois, and could release details later today. Under the alleged scheme, companies such as Aldus paid political fundraiser Henry Morris through a dummy company, in order to get a slice of New York’s pension fund. Aldus allegedly gave $320,000, in exchange for a $375 million investment. (Read more Andrew Cuomo stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.