agent Entrepreneur logo
MenuMENU
SearchSEARCH

SEC Delays Vote on Deal for Rattner

October 15, 2010
3 min to read


The Securities and Exchange Commission on Thursday delayed a vote on a deal to end a pension fraud probe involving ex-auto czar Steve Rattner, The Detroit News reported.


The deal under consideration would reportedly include a $6 million fine and ban Rattner from serving in the financial industry for two years.

Ad Loading...


The deal also would reportedly allow him to continue to advise New York Mayor Michael Bloomberg, according to published reports.


The settlement is on hold as Rattner continues to work out a deal with New York State Attorney General Andrew Cuomo on a separate investigation.


Rattner declined to comment Thursday.


At issue is a "pay-to-play" scandal where Rattner paid a hefty "finders fee" to land an investment from the $129 billion New York State Pension Fund.


Rattner's investment firm, Quadrangle Group LLP, paid $1.1 million to Hank Morris, a former top political consultant to ex-New York Comptroller Alan Hevesi, according to Cuomo's investigation. Rattner reportedly met with Morris.

Ad Loading...


Quadrangle then received an investment of $100 million from the state pension fund. Quadrangle settled a probe of the firm in April for $7 million and reproached Rattner as part of a settlement with Cuomo.


Rattner left the firm in February 2009 to oversee the Obama administration's restructuring of the auto industry and left the auto task force in July 2009.


"We wholly disavow the conduct engaged in by Steve Rattner, who hired the New York State Comptroller's political consultant, Hank Morris, to arrange an investment from the New York State Common Retirement Fund. That conduct was inappropriate, wrong and unethical," the firm said.


Quadrangle called reforms proposed by Cuomo "vitally necessary to eliminate pay-to-play practices from the public pension fund investment process.We urge others in the industry to follow."


Quadrangle retained Morris as a placement agent to increase to $100 million from $25 million an investment Quadrangle was seeking from the pension fund.

Ad Loading...


In the middle of the investment decision-making process, Quadrangle also arranged a DVD distribution deal for a low-budget movie, "Chooch," that was produced by the brother of then New York pension fund Chief Investment Officer David Loglisci.


Hevesi, 69, pleaded guilty to a second-degree charge of receiving reward for official misconduct.


He resigned as state comptroller in 2006.


Peter Henning, a Wayne State University law professor and former SEC attorney, said Rattner is trying to put the matter behind him.


"Two years is not crippling, but this is a stain on his reputation," he said.

Ad Loading...


Rattner is worth an estimated $188 million to $608 million and is on a book tour to tout his memoir "Overhaul."


In his book, Rattner described the episode as wrenching.


"During my 35 years in the working world, I had never been accused of so much as jaywalking," Rattner said. "It was painful for me and my family to have my honesty and integrity impugned, often by innuendo."


Rattner, a former New York Times reporter, is set to appear at the Detroit Economic Club to discuss his book on Oct. 26.

More Industry

Photo of MINI nameplate on the hood of a white MINI Cooper
Industryby Hannah MitchellJuly 23, 2026

Autos More Appealing

Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.

Read More →
red car parked in front of a sunset, The Used Market Divide, Agent Entrepreneur
Industryby Lauren LawrenceJuly 23, 2026

Used EVs Defy Overall Market

While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.

Read More →
Photo of a retriever dog looking out of an open SUV window with a yellow Peugeot headrest on the top of the window below it
Industryby Hannah MitchellJuly 16, 2026

Gone to the Dogs

A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.

Read More →
Ad Loading...
Aerial shot of a car dealership
Industryby Hannah MitchellJuly 13, 2026

OEM Poll Sees Industry Evolution

Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.

Read More →
Foreign Cars Italia dealership store in front of sunset
Industryby Hannah MitchellJuly 2, 2026

Luxe N.C. Dealerships Change Hands

A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.

Read More →
inside of car, person with hands on black steering wheel
Industryby Lauren LawrenceJuly 2, 2026

Exposure Drives Interest in Chinese Cars

At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.

Read More →
Ad Loading...
Woman's hands holding an wallet empty of cash
Industryby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Rob Mancuso sitting in a chair on stage
Industryby Hannah MitchellJuly 1, 2026

Agent Advocate

Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.

Read More →
Photo of a touchscreen on a car's dashboard
Industryby Hannah MitchellJune 25, 2026

Driving Under Distraction

Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.

Read More →
Ad Loading...
split background green and blue. 2019 to 2025 with car going from starting location to end point. $37,310 and $48,402. Agent Entrepreneur logo
Industryby Lauren LawrenceJune 25, 2026

Affordable New Cars a Thing of the Past

More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.

Read More →
Ad Loading...