Hank Morris News

On March 19, 2009, Mr. Morris and David Loglisci, another advisor, were charged with 123 counts - including bribery, grand larceny, money laundering and fraud - in an indictment that said they had turned New York's $122 billion pension fund into a criminal enterprise. The scheme netted them and other Hevesi associates tens of millions of dollars in kickbacks from firms investing the fund's money, the indictment said.

Mr. Morris and  Mr. Loglisci, the top investment officer of the pension fund, were accused of directing half of the $10 billion that the fund invested in so-called alternative investments, like hedge funds and private equity firms, to companies that used Mr. Morris or his associates as paid intermediaries. Firms that were not willing to pay were often turned down, according to the indictment.

On March 10, 2010, Mr. Loglisci pleaded guilty to securities fraud on Wednesday, saying he helped steer pension money to political contributors to Mr. Hevesi and to companies that paid kickbacks to Mr. Morris.