Comptroller Bans Lobbyists from Pension Investments

New York, NY —

New York Comptroller Thomas DiNapoli says he has banned middlemen and lobbyists from helping to steer investments from the state's $122 billion pension fund. DiNapoli's move comes as more critics are calling for an independent board to oversee the investment decisions of the state comptroller's office.

State and federal investigators are probing the payment of millions of dollars of fees to politically-connected "placement agents" at the pension fund during the tenure of Alan Hevesi.

In a related move, City Comptroller Bill Thompson is calling for a ban on placement agents with the city's pension funds. He's called a meeting with the fund's trustees, who must approve any ban.

Thompson, a candidate for mayor, also is asking State Attorney General Andrew Cuomo to look into whether the investment fund, Quadrangle Group, lied or failed to disclose the payment of placement fees to Hevesi consultant Hank Morris.

Thompson says the city pension fund invested $125 million in Quadrangle in 2005 and 2006.