Friday, December 04, 2009
Sharona Coutts, ProPublica,
Sharona Coutts, ProPublica,
Prominent Political Fundraiser Pleads Guilty in N.Y. Pension Scandal
The Republican National Committee’s former finance chairman pleaded guilty Thursday to paying nearly $1 million in bribes to officials at New York State's pension system, in exchange for a $250 million placement in his investment fund.
The former official, Elliott Broidy, who also resigned as chairman of Markstone Capital Partners, the private equity firm, admitted that he had paid for luxury trips to hotels in Israel and Italy for pension staffers and their relatives -- including first-class flights and a helicopter tour. Broidy funneled the money through charities and submitted false receipts to the state comptroller's office to cover his tracks.
The California financier, who was the GOP finance chairman in 2008, also paid thousands of dollars toward rent and other expenses for former "Mod Squad" star Peggy Lipton, who was dating a high-ranking New York pension official at the time.
The details of the investments can seem arcane, but they involve corruption of a system that's supposed to safeguard the retirement savings of hundreds of thousands of public employees. The New York investigation spread to California, New Mexico and Illinois.
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Posted by Tracey on 12/04/09 at 12:14 PM •
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