New York State Common Retirement Fund, Albany, will receive $20 million from David Leuschen, co-founder and senior managing director of private equity firm Riverstone Holdings, in restitution to resolve his role in a pay-to-play investigation of corruption involving investments of the $126 billion pension fund, Andrew M. Cuomo, New York state attorney general, announced today.
Mr. Cuomo's office investigated the New York pension fund's investments in joint ventures of Riverstone and Carlyle Group: commitments of $150 million to Carlyle/Riverstone Global Energy & Power Fund II in November 2003; $350 million to Carlyle/Riverstone Global Energy & Power Fund III in October 2005; and $30 million to Carlyle/Riverstone Renewable Energy Infrastructure Fund I through the Hudson River Fund II in December 2005.
Riverstone Holdings in June agreed to pay $30 million in restitution, and Carlyle Group agreed to pay $20 million in May, according to the statement.
A Riverstone comment about the settlement included in Mr. Cuomo's statement said, “Riverstone and its founders are pleased to have resolved all issues with the New York attorney general with respect to its investigation of fundraising activities at the New York Common Retirement Fund. From the outset, we have cooperated fully with this investigation and we remain extremely proud of our track record of providing outstanding investment returns for the CRF and our other partners. We continue to support the efforts of the New York attorney general and his staff to level the fundraising playing field for all parties involved.”
Jeffrey Taufield, Riverstone spokesman, declined to comment.
New York pension fund media officials couldn't be reached.