UPDATE 1-NY state pension sues Aldus, officers for kickbacks

Wed May 6, 2009 11:29pm BST
[-] Text [+]

* NY state comptroller sues Aldus for fraud, bribery

* Comptroller says defendants engaged in kickback scheme

* NY seeks over $5 mln in fees and damages

* NY pension releases list of Hevesi placement agents (Recasts, adds details, new paragraphs: 2, 8, 10-13, 15-17)

By Joan Gralla

NEW YORK, May 6 (Reuters) - New York state's pension fund has sued Aldus Equity Partners LP, its principals and others, charging they took part in a kickback scheme that has already resulted in state and federal charges.

The probes have turned a spotlight on lawyers, lobbyists and placement agents hired by investment firms eager to help run nearly $3 trillion in public pensions around the nation.

New York state's suit aims to recover $5 million in fees, as well as compensatory and punitive damages, State Comptroller Thomas DiNapoli said on Wednesday.

"The suit we're filing today is the next step to unravel the tangled web of misconduct we inherited from the Hevesi administration," he said in a statement announcing the suit.  Continued...

 
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