According to Reuters, the Securities and Exchange Commission is set to settle with the former head of the Obama Administration's auto task force, Steven Rattner. Earlier this year, the SEC charged Rattner with participating in a pay-to-play pension program, but the commission is expected to announce today that the former car czar has agreed to pay a fine of more than $5 million and accept a multi-year ban from the securities industry.
New York Attorney General Andrew Cuomo has led an investigation into fraud surrounding the state's $132 billion pension fund that has resulted in seven guilty pleas. One of those pleas came from the former New York comptroller Alan Hevesi, who was charged with corruption.
Rattner, meanwhile, has been charged with unscrupulous activities associated with Quadrangle, LLC – a private equity fund he co-founded in 2000. The SEC alleges that the investment group gave kickbacks to officials if they directed state pension money into the fund. Since then, Quadrangle has agreed to pay $12 million in fines associated with that scheme. Rattner, meanwhile, missed out on those proceedings because he no longer worked for the fund at the time.
[Sources: Reuters, CNN Money | Image: Neilson Barnard/Getty for Fortune Magazine]