Wednesday, March 10, 2010

Ex-official admits guilt in NY pension probe

NEW YORK — A former New York state investment officer has admitted helping channel hundreds of millions of dollars in public pension fund money to politically connected investment firms in a "pay-to-play" scheme.

David Loglisci (loh-GLEE'-see) pleaded guilty in a Manhattan court Wednesday to a securities fraud charge.

Loglisci had authority to recommend how to invest the pension money. Loglisci says he let political adviser Hank Morris steer the money to firms that contributed to then-Comptroller Alan Hevesi's campaign or paid "placement" fees to Morris and his associates.

Morris has pleaded not guilty in the pension probe. Hevesi has not been charged.

Defense lawyer Kevin Keating says Loglisci "found himself in a nearly impossible situation" at the pension fund.

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