Filed under: Government/Legal
Former White House Auto Industry Task Force member Steven Rattner is being sued by New York State Attorney General and Governor-elect Andrew Cuomo for allegedly paying kickbacks to win investments in the state's pension fund.
Cuomo is seeking $26 million from Rattner, and to bar him from trading securities in New York for life, an agreement that might hamstring Rattner if he can't do securities work in New York any longer.
Rattner, who recently penned a book about his time on The Obama task force ("Overhaul," [Houghton-Mifflin-Harcourt, 2010]) that guided General Motors and Chrysler through bankruptcy, already settled a related case against him brought by the Securities and Exchange Commission, which brought a civil lawsuit against the private equity executive and former New York Times reporter.
Rattner's former investment firm, Quadrangle, settled with New York State and the SEC last April, which was accompanied by a statement by Quadrangle saying Rattner's conduct was "inappropriate, wrong and unethical." Quadrangle agreed to pay $7 million to Cuomo and $5 million to the SEC without admitting or denying wrongdoing.
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