Attorney General Cuomo Announces Agreement With Steven Rattner Former Founding Principal Of Quadrangle In Public Pension Fund Investigation

NEW YORK, N.Y. (December 30, 2010) - Attorney General Andrew M. Cuomotoday announced an agreement with Steven Rattner, former foundingprincipal of private equity firm Quadrangle Group, LLC("Quadrangle") in the Attorney General's public pension fundinvestigation.

Mr. Rattner will pay $10,000,000 in restitution to the State of NewYork and be banned from appearing in any capacity before any publicpension fund within the State of New York for five years. The agreementtoday will end the two lawsuits previously filed against Mr. Rattner bythe Attorney General's Office in New York State Supreme Court relatingto the circumstances surrounding $150 million in investments inQuadrangle from the New York State Common Retirement Fund ("CRF").

Attorney General Cuomo stated: "I am gratified that we have beenable to reach an agreement in this case, as it resolves the last majoraction of our multi-year investigation. The state pension fund is avaluable asset held in trust for retirees and supported by taxpayers.Through the many cases, pleas and settlements in this investigation, I believe we have been able to help restore and protect the integrity of the state pension fund."

In a statement issued in conjunction with today's agreement, Mr.Rattner stated: "I am pleased to have reached a settlement with theNew York Attorney General's Office, which allows me to put this matterbehind me. I apologize if during the course of this process there isanything I did that may have made reaching this agreement moredifficult. I respect the work of the Attorney General and his staff toensure that the New York State Common Retirement Fund operates properlyand in the best interests of New Yorkers."

With today's agreement, Cuomo's investigation has securedagreements with nineteen firms and five individuals, garnering over $170million for New York and the pension fund. The investigation has led toeight guilty pleas, including pleas by former Comptroller Alan Hevesi,his chief political consultant, and his Chief Investment Officer.

BACKGROUND INFORMATION

Last year, Cuomo announced his Public Pension Fund Reform Code ofConduct, which, among other things, bans investment firms fromcompensating intermediaries for introductions to public pension funds.To date, nineteen firms have endorsed the Code: investment firms TheCarlyle Group, Riverstone Holdings, LLC, Pacific Corporate GroupHoldings, LLC, HM Capital Partners I, Levine Leichtman Capital Partners,Access Capital Partners, Falconhead Capital, Markstone Capital Group,Ares, Freeman Spogli, Quadrangle, GKM, and Paladin Homeland SecurityHoldings; placement agent Wetherly Capital Group; political consultingfirm Global Strategy Group; lobbying firms Platinum Advisors andPatricia Lynch Associates; law firm Manatt Phelps & Phillips, LLP; andpension fund advisor Aldus Equity. Four individuals have also agreed toabide by the Code of Conduct: David Leuschen of Riverstone, andunlicensed placement agents Kevin McCabe, Jerry Weiss and William("Bill") White.

These firms collectively have agreed to return more than $100 millionassociated with pension fund investments; these funds will principallybe provided to the pension fund for the benefit of the pension holders.Payments from individuals, including criminal defendants, bring thattotal to over $170 million for the pension fund and the State.

Attorney General Cuomo's investigation into corruption at the pensionfund has led to a number of criminal charges and eight guilty pleas todate, including guilty pleas by the following individuals: formerComptroller Alan Hevesi; Hevesi's former paid political advisor Henry "Hank" Morris; former Chief Investment Officer at the Office of theState Comptroller David Loglisci; former Liberal Party Chair RayHarding; investment advisor Saul Meyer; hedge fund manager BarrettWissman; unlicensed placement agent Julio Ramirez; and venture fundmanager Elliott Broidy.