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Aldus exec, placement agent plead guilty to N.Y. pay-to-play fraud charges
By Christine Williamson
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(October 7, 2009 - Wednesday) - Mr. Meyer, a founding partner of private equity manager Aldus Equity, pleaded guilty in state supreme court in New York on Oct. 2 to fraud charges relating to NYSCRF investments. The plea was unsealed today, according to a news release from Mr. Cuomo's office. Mr. Meyer faces four years in prison.
Mr. Meyer admitted he was aware of the pay-to-play scheme allegedly devised by political adviser Hank Morris and David Loglisci, the former CIO of the NYSCRF. The alleged fraud was committed in connection with kickbacks allegedly paid to Mr. Morris in exchange for the pension plan's investment in the Aldus/NY Emerging Fund and Strategic Co-Investment Partners LP, according to the news release.
Mr. Harding pleaded guilty today in state supreme court to charges that he participated in the Morris/Loglisci pay-to-play scheme, according to Mr. Cuomo's news release. Mr. Harding acted as a placement agent, gaining $800,000 in sham placement fees relating to NYSCRF investments with Paladin Capital Management and Pequot Capital Management, two private equity firms, in exchange for political favors to former state Comptroller Alan Hevesi and his family, according to the release.
Mr. Harding faces four years in prison, but Mr. Cuomo said at a press conference that Mr. Harding is cooperating with his office in the ongoing investigation of pay-to-play practices. “Ray's full cooperation is very important to our case” against Messrs. Morris and Loglisci, Mr. Cuomo said. He added that he may recommend that Mr. Harding's charge be downgraded to a misdemeanor depending on the level of his cooperation.
SEC spokesman Eric Hotmire declined to comment in response to a request seeking the status of SEC civil charges against Messrs. Meyer and Harding in connection with the alleged pay-to-play scheme filed in U.S. District Court in New York on April 15. Court documents indicate that the case still is active.
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