Steven Rattner, former founding principal of the private equity firm Quadrangle Group, will pay $10 million in restitution to the state of New York for allegedly paying kickbacks to get business from the $132.8 billion New York State Common Retirement Fund, Albany.
That's in addition to the $6.2 million Mr. Rattner agreed to pay the SEC in November to settle separate SEC charges against him in the alleged kickback scheme.
As part of the settlement with the state of New York, Mr. Rattner also is banned for five years from “appearing in any capacity before any public pension fund within the state of New York,” according to a news release from New York Attorney General Andrew M. Cuomo.
“I am gratified that we have been able to reach an agreement in this case, as it resolves the last major action of our multiyear investigation,” Mr. Cuomo said in the release.
“Through the many cases, pleas and settlements in this investigation, I believe we have been able to help restore and protect the integrity of the state pension fund,” he added in the release.
The state attorney general's office said in the release that its investigation has recouped more than $170 million for the New York pension fund through agreements with 19 firms and five individuals.
Neither Mr. Cuomo nor Mr. Rattner could be reached for further comment.
Mr. Cuomo, who is New York's governor-elect, had sued Mr. Rattner in November, seeking at least $26 million and his immediate lifetime ban from the securities industry in New York.
Mr. Rattner, who is no longer with Quadrangle, caused the New York-based private equity firm to pay kickbacks to obtain $150 million in investments from the New York state pension fund, according to Mr. Cuomo's civil securities fraud suit.
Bloomberg contributed to this story.
