New York Attorney General Andrew Cuomo today announced private equity big shot Elliott Broidy plead guilty for his involvement in a pay-to-play kickback scheme to manage state pension funds.AG Cuomo: Broidy acknowledged paying nearly one million dollars in gifts for the benefit of OSC officials to obtain a $250 million investment from the New York State Common Retirement Fund in Markstone Capital Partners, L.P.. Broidy pleaded guilty to a felony charge of rewarding official misconduct and will cooperate in the Attorney General’s ongoing investigation. Broidy will also forfeit $18 million in connection with his plea.
Cuomo has been investigating pay-to-play pension management issues in New York for two years and has issued subpoenas to more than 100 investment firms.
“Broidy paid nearly a million dollars in bribes to get a quarter billion dollar investment. For Broidy, this was a small price to pay. For New York taxpayers, the harm is incalculable,” said Cuomo. “Corruption corrodes the integrity of the pension system and the public’s trust in government. That is too high a price to bear.”
The “pay” part included gifts and payments to an official’s friends, a sham consulting contract, luxury travel expenses in Israel for officials and family members, and a concealed payment to the Loglisci Brothers’ movie, “Chooch.”
Broidy resigned Tuesday from Markstone. He faces a possible sentence of up to 4 years in prison for the charge of rewarding official misconduct, a felony.
According to his Markstone bio, Broidy is Chairman and CEO of Broidy Capital Management, a private investment company which he founded in 1991; Chairman of Tomcar Ltd., an off-road vehicle manufacturer, and of ESI Holdings, Inc., an event management and logistics company.
Broidy served for a period of seven years as a Commissioner of the Los Angeles City Fire and Police Pension Fund.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.