David Loglisci, former chief investment officer at the state pension fund, avoided jail yesterday for his role in the state’s pay-to-play scandal involving former Comptroller Alan Hevesi, who is in prison.
According to Reuters, Loglisci received a conditional discharge for allowing a “culture of corruption” at the fund.
Loglisci may be best known for his strange involvement in the production of the low-budget movie “Chooch” in 2003. Loglisci was accused of using his major role at the pension fund to get a distribution deal for the movie about life in Queens, which was produced by his brother. And the film was distributed by the Quadrangle Group LLC, which had landed investment work with the pension fund.
From the Reuters article:
Loglisci, 42, who earned a law degree and MBA from the University of Notre Dame, was a vice president of investment banking at Salomon Smith Barney before he began working for the New York State Common Retirement Fund in 2002. He took a 70 percent paycut by going into public service, he said.
Loglisci is among eight people who pleaded guilty in a probe of “pay-to-play” at the New York state Common Retirement Fund under Alan Hevesi, the comptroller from 2003 to 2006, whose job it was to manage the fund. Hevesi, who admitted to abusing his position, is serving up to four years in prison.
The investigation by former New York Attorney General Andrew Cuomo, now the state’s governor, revealed how politics and placement fees resulted in favored treatment for certain money managers.
More than $5 billion in alternative investments at the New York pension fund were tainted by kickbacks, the office said.