Cuomo Reaches Deals With Two Funds in Pension Fund Probe

Odyssey Investment Partners LLC and HFV Management LP have reached agreements with New York Attorney General Andrew Cuomo that resolve probes of their involvement with pay-to-play at the state pension fund.

(December 16, 2010) — As part of his continued investigation into New York’s pension fund, the state’s Attorney General Andrew Cuomo has reached an agreement with two investment firms.

The two firms — Dallas hedge-fund manager HFV Management and New York private-equity firm Odyssey Investment Partners — settled with the attorney general as part of his investigation of efforts to influence investment business with the $132.8 billion New York State Common Retirement Fund.

Under the agreement, Odyssey will pay $400,000 to New York State while HFV co-founder Barrett Wissman has already agreed to pay $12 million as part of his guilty plea in connection with Cuomo’s investigation, according to a statement released by the attorney general’s office. Previously, HFV paid a penalty of $150,000 as part of a settlement with the US Securities and Exchange Commission.

Additionally, the two firms have agreed to support the attorney general’s code of conduct, no longer using placement agents to garner investments from public pensions in New York, Cuomo’s release said.

“Twenty-one firms have now adopted our Code of Conduct to reform public pension funds,” said Attorney General Cuomo in the statement. “Our Code removes the influence of politically-connected finders and puts an end to the corrosive effect of campaign contributions on pension fund investments. We will continue to protect and restore the integrity of New York’s pension fund, our State’s single largest asset.”

To date, according to the report from the attorney general’s office, Cuomo’s investigation has secured agreements with twenty-one firms as well as four individuals, garnering more than $161 million for New York and the pension fund. The investigation has led to eight guilty pleas, including pleas by Hevesi, Morris, Wissman, and former Chief Investment Officer David Loglisci.

To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href=''></a>; 646-308-2742