Dan Primack

The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley

Kickback kingpin Hank Morris pleads guilty

November 22, 2010: 1:11 PM ET

Hank Morris, the private equity "finder" at the heart of New York's public pension kickback scandal, today plead guilty to a felony violation of The Martin Act.

As part of the deal, Morris will repay $19 million, accept a lifetime ban from the securities industry and pledge to never again solicit investments from any government entity within New York. He also faces up to four years in prison, with a sentence to be imposed by a judge next February.

"Hank Morris used his influence at the New York State Comptroller's Office to stockpile millions in fees for himself from state pension fund investments," said New York Attorney General Andrew Cuomo, via a press release. "Through his scheme, Morris personified pay-to-play corruption.  With this plea, funds will be rightly restored to the State of New York and justice will be served."

The Morris plea had been expected, and comes less than a week after Cuomo charged former car czar Steven Rattner with a related Martin Act violation. Rattner so far has refused to settle with Cuomo, insisting that he will not be "bullied."

Last guy I heard stand up to Cuomo like that was... Well, I guess it was Hank Morris.

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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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