David Loglisci Describes “Culture of Corruption” within NYS Common Retirement Fund
Attorney General Andrew M. Cuomo today announced that David Loglisci, the former Chief Investment Officer at the Office of the New York State Comptroller (OSC), who was indicted last year along with co-defendant Henry “Hank” Morris, pled guilty to a Martin Act felony for his role in the corruption of the New York State Common Retirement Fund (CRF) and will cooperate in the ongoing investigation.
Today’s plea is part of a more than two-year ongoing investigation into corruption involving the Office of the State Comptroller and the Common Retirement Fund. The charges to date allege a complex criminal scheme involving numerous individuals operating at the highest political and governmental levels under former Comptroller Alan Hevesi, in which the State pension fund was used as a piggy bank for the Comptroller’s chief political aide and a favor bank for political allies and other friends.
“With today’s plea, a former top official overseeing the state’s single largest asset admitted that decisions were driven by politics and greed – not the best interests of the fund or its beneficiaries,” said Attorney General Cuomo. “Not only were pension recipients defrauded but so were the taxpayers across New York who are ultimately responsible for sustaining the fund. A culture of corruption permeated the fund and shows how vulnerable it can be to graft and exploitation without dramatic reform.”
Cuomo also issued subpoenas in May of 2009 to over 100 investment firms and agents after his investigation found that 40 to 50 percent of agents obtaining investments from New York pension funds were unregistered.
And you were wondering why your taxes are so high? Consider this…
The State pension fund is the biggest pool of money in the state and the third largest pension fund in the country, most recently valued at approximately $129 billion. At the time of the events charged, it was valued at approximately $150 billion.
Read the whole thing here. As you read it, realize that every orifice of New York State is just as corrupt, if not more so.