Jerry A. Weiss, an unlicensed placement agent, reached a settlement with Andrew M. Cuomo, New York attorney general, as part of the continuing pay-to-play investigation of investment business with the $132.8 billion New York State Common Retirement Fund, Albany, and the New York City pension system, whose five pension funds have a combined asset total of $106.2 billion.
According to a settlement document signed Dec. 8, Mr. Weiss, who did not admit or deny wrongdoing, agreed to pay a $26,000 fine to the state and to pay back $52,000 he received for steering investment business from two New York City pension funds to GF Capital Management & Advisors, the parent of GF Capital Private Equity, the document said.
He also agreed to forgo future payments due in connection with his persuading the New York City Police Pension Fund and New York City Fire Pension Fund to invest in GF Capital Private Equity, the document said. Asset values for the funds, which are two of the five New York City pension funds, could not be learned by press time.
The legal agreement said Mr. Weiss is a member of LW Strategies LLC, a consulting firm, who introduced GF Capital Private Equity to members of the New York City comptroller’s office when William C. Thompson Jr. was comptroller; Mr. Thompson left the comptroller’s office at the end of 2009 after unsuccessfully running for New York City mayor.
At the time, Mr. Weiss lacked a securities license and wasn’t affiliated with a broker-dealer, the settlement document said.
The document said Mr. Weiss signed an agreement with GF Capital Management & Advisors in January 2007 in which the firm would pay him for “advisory services” related to a total of $13 million in investments made by the two New York City pension funds in GF Capital Private Equity. Mr. Weiss was to have received 20% of the compensation received by GF Capital Private Equity in connection with the two funds’ investments.
Mr. Weiss is also a partner in the law firm of Hiscock & Barclay, which in July contributed $45,900 to Andrew Cuomo’s gubernatorial campaign, according to New York State Board of Elections online data. The firm donated $10,000 to the campaign in January 2008.
A biography for Mr. Weiss on the Hiscock & Barclay website shows he served as a deputy to Mario Cuomo, Andrew Cuomo’s father, when he was New York’s secretary of state, and later as counsel and a campaign manager when Mario Cuomo was running for lieutenant governor.
“The settlement terms regarding Mr. Weiss are consistent with the agreements obtained from every other target of the investigation,” John Milgrim, a spokesman for Andrew Cuomo, said in a telephone interview.
Bloomberg contributed to this story.