Steven Rattner to pay $10 million settlement to resolve pension fund suit

Article by Christian A., on January 2, 2011

Steven Rattner, the former Obama administration auto industry czar, entered a deal to pay $10 million to settle two lawsuits by New York's attorney general connected to claims of kickbacks involving the state's pension fund.

In addition, Rattner agreed to be prohibited from appearing in any capacity before any public pension fund in New York for a five-year period.

In an e-mailed statement, Attorney General Andrew Cuomo said that he is “gratified” that they were able to agree on the resolution of the case that is actually the “last major action” of its multi-year investigation.

Rattner said that he is “pleased” about the settlement and he also expressed his apologies if he had done anything during the process that made the agreement more difficult.

Cuomo, who is New York's governor-elect, filed a suit against Rattner worth at least $26 million. Cuomo also wanted Rattner to get an immediate lifetime ban from the securities industry in New York.

Cuomo's civil securities-fraud suit claimed that Rattner, the former founding principal of private equity firm Quadrangle Group LLC, had caused the New York-based private equity firm to pay kickbacks to get $150 million in investments from the New York state pension fund.

Rattner is not anymore connected with Quadrangle. Rattner has already settled a parallel probe with the U.S. Securities and Exchange Commission for $6.2 million. He also agreed to being banned for two years from associating with broker-dealers or investment advisers. [via autonews - sub. required | Photo credit: Getty Images]

Topics: lawsuit

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