Citing a “culture of corruption” that reached the highest levels of the state Comptroller’s Office, a former state pension-fund officer pleaded guilty yesterday to steering hundreds of millions of dollars to investment firms that paid kickbacks to former Comptroller Alan Hevesi’s top political aide.
David Loglisci in Manhattan Supreme Court made the startling admission of his role in the pay-to-play scheme.
“Investment decisions were made in part according to political benefit for the comptroller, rather than exclusively in the best interests of the people,” said Loglisci, 38.
He acknowledged allowing Henry “Hank” Morris, a onetime top political aide to Hevesi, to cherry-pick the firms that would be allowed to invest the pension funds.
“At the direction of senior [Comptroller’s Office] officials, at times I effectively ceded my authority over the alternative investment portfolio to Morris,” said Loglisci, who faces up to four years in prison.
The firms that Morris chose inevitably were ones that had made generous contributions to Hevesi’s campaign, as well as companies willing to pay Morris and his friends steep placement fees, he said.
“With the full knowledge . . . and participation of senior [Comptroller’s Office] officials, and at times myself, Morris ensured that investment decisions were made to financially benefit himself and third parties,” said Loglisci, who worked in the Comptroller’s Office under Hevesi and the current comptroller, Tom DiNapoli.
Morris, who was indicted along with Loglisci, is awaiting trial.
In a telephone conference with reporters after Loglisci’s guilty plea, Attorney General Andrew Cuomo, whose office spearheaded the investigation, refused to comment about whether Hevesi had a role in the scheme.
A lawyer for Hevesi, who from 2002 to 2006 controlled the $150 billion pension pool before resigning in disgrace, said Hevesi never told anyone at the office to get Morris’ OK in picking the firms that would do business with the state.
A source close to the investigation said: “Loglisci gives Cuomo Morris, but only Morris can give him Hevesi.”