Steven Rattner, the former principal of private equity firm Quadrangle Group LLC, will pay $10 million to settle a probe by New York Attorney General Andrew Cuomo of corruption at the state pension fund in a deal that largely ends a three-year investigation that has yielded eight guilty pleas.
Rattner's payment of restitution to the state of New York is less than half of the $26 million Cuomo sought. Rattner also agreed to be banned from appearing in any capacity before any public pension fund in the state for five years, the attorney general’s office said in an e-mailed statement. Cuomo, New York's governor -elect, sought a lifetime ban from the securities industry.
“I am gratified that we have been able to reach an agreement in this case, as it resolves the last major action of our multi-year investigation,” Cuomo said in the statement.
Rattner said in the same statement he was “pleased to have reached a settlement.”
“I apologize if during the course of this process there is anything I did that may have made reaching this agreement more difficult,” he said.