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Dallas hedge fund exec Barrett Wissman pleads guilty to securities fraud
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(April 15, 2009 - Wednesday) - http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/041609dnbuswissman.d91a86e3.html
By BRENDAN CASE / The Dallas Morning News
bcase@dallasnews.com
A Dallas hedge fund executive pleaded guilty to securities fraud and is cooperating with an investigation by the New York attorney general and the U.S. Securities and Exchange Commission into corruption at that state's pension fund, The New York Times reported Wednesday.
Barrett Wissman, a business associate of the Hunt family, received millions of dollars by acting as a finder who connected the New York pension fund and investment firms, The Times reported.
Such fees are not illegal. But in one case, Wissman told an investment firm that he would not share a $2.4 million payment with anyone else. Instead, he secretly sent nearly $800,000 of it to a political aide working for New York state's former comptroller, Alan Hevesi, the SEC said in a lawsuit.
The SEC lawsuit does not mention Wissman by name, referring only to "Individual A." Wissman is that person, The Times reported, citing court records unsealed Tuesday in New York.
A Dallas lawyer representing Wissman, Bill Brewer, said his client pleaded guilty to violations under the Martin Act, a New York securities law that gives the state attorney general significant prosecutorial powers.
"From 2004 to 2007, Mr. Wissman acted as a finder in connection with certain investments that were presented to the New York State Common Retirement Fund," Brewer said in a statement to The Times. "Mr. Wissman acknowledges that he has pled guilty to Martin Act violations. He takes full responsibility for his conduct and is cooperating in the ongoing investigation by the New York attorney general's office. As such, he declines to make any further statement."
Wissman will pay $12 million over several years as part of his plea, according to The Times.
Wissman was also a managing director for HFV Asset Management, a money manager for the Hunt family, the newspaper reported. The Hunts have not been implicated in the case.
Wissman is a former board member of the Dallas Symphony Orchestra.
Also under scrutiny is the Carlyle Group, a high-profile private equity firm. The Carlyle Group has denied wrongdoing and said it is cooperating with the investigation.
In March, New York Attorney General Andrew Cuomo brought a 123-count indictment against two aides to Hevesi, Hank Morris and David Loglisci. Lawyers for the two men have denied their clients engaged in any wrongdoing.
Hevesi stepped down in 2006 after pleading guilty to an unrelated felony.
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