The New York attorney general brought a new criminal charge in its investigation into an alleged “ongoing scam” or kickback scheme for investments from New York state’s pension fund, according to The Wall Street Journal.
The charge was filed against Saul Meyer, founder of Aldus Equity Partners. The Securities and Exchange Commission also filed charges in a joint investigation into investment firms that allegedly made payments to middlemen to secure pension-fund business.
“This is a nexus of private-sector fraudulent operators meeting government and public-sector fraudulent operators,” New York Attorney General Andrew Cuomo told the WSJ referring to the broader investigation. “I believe we are disclosing a national network of actors who often acted in concert across the country,” hurting retirees and taxpayers.
According to Cuomo, his staff is now coordinating investigations with law-enforcement agents in several states, including California, New Mexico, Connecticut, and Illinois. His office indicated that they are looking at the roles of lawyers and lobbyists in the pension-fund business.
Meyer was charged with one criminal felony count of securities fraud under New York’s Martin Act and pleaded not guilty.