Connecticut Treasurer Denise Nappier yesterday released the results of her office’s inquiry into which investment firms used placement agents to obtain business from Connecticut’s pension fund under the reign of previous State Treasurer Paul Silvester, and the amounts of those payments.
Veritas Capital Fund and Walton Street Capital paid sales commissions to Christopher Stack, who has admitted to participating in a money laundering and kickback scheme with Mr. Silvester, who pleaded guilty last month to six counts of bribery, money laundering and rackeetering and will be sentenced in March.
Veritas, a venture capital firm, paid $675,000 in fees to KCATS, Mr. Stack’s firm, according to Ms. Nappier’s office, and Walton Street Capital paid $494,062.
A secretary taking calls for Veritas said the company’s two managing partners were out of the office. Ira Schulman, chief investment officer with Walton Street, said the firm has fully cooperated with the U.S. Attorney and that it is not the target of any investigation. "We knew nothing of his involvement with Silvester and nothing of their activities that went on,’’ said Mr. Schulman.
