In what appears to be the litigation equivalent of a three-way attack, on the day he is scheduled to appear on multiple news programs to discuss the General Motors IPO, former car czar and Quadrangle founder Steven Rattner has had multiple lawsuits filed against him by the SEC and Attorney General Andrew Cuomo for his participation in a kickback scheme to obtain investments from New York’s largest pension fund. Rattner has agreed to settle the SEC suit, which asserts Rattner, "delivered special favors and conducted sham transactions that corrupted the Retirement Fund’s investment process" by paying $6.2 million and consenting to a two-year ban from the industry.
In a press release, SEC Enforcement director Robert Khuzami could not help but take a dig at Chooch, the movie Rattner helped finance the distribution of in exchange for the right to manage the fund.
“New York State retirees deserve investment advisers that are selected through a transparent, conflict-free process, not through payoffs, undisclosed financial arrangements and movie distribution deals,” said Robert Khuzami, Director of the SEC’s Division of Enforcement.
Not to mention ones with better taste in movies. Rattner will be fighting Cuomo's suits, however, who seek an additional $26 million plus a permanent ban from the securities industry. "While settling with the S.E.C. begins the process of putting this matter behind me, I will not be bullied simply because the Attorney General’s office prefers political considerations instead of a reasoned assessment of the facts," he told the Times's DealBook. "This episode is the first time during 35 years in business that anyone has questioned my ethics or integrity — and I certainly did not violate the Martin Act. That’s why I intend to clear my name by defending myself vigorously against this politically motivated lawsuit."