Hevesi’s Fund Chief Admits Pay-To-Play

By Joseph Orovic

Attorney General Andrew Cuomo’s ongoing investigation into the State’s Pension Fund scandal netted its highest ranking official yet, when David Loglisci, Chief Investment Officer to comptrollers Alan Hevesi and Tom DiNapoli, admitted corruption and pay-to-play dictated the allocation of State money for the Common Retirement Fund.

Loglisci is the highest ranking member of the office to enter a guilty plea for a Martin Act felony.

“This is not three layers deep, four layers deep,” Cuomo said. “This is the top investment official. This is in many ways the culmination of what we’ve doing over the last two years.”

Loglisci’s role assigned him broad authority in the allocation of State pension fund money, a duty he admitted relinquishing to Hevesi’s political consultant Hank Morris, who then allegedly used his new clout to steer State money towards politically favored investment firms.

Senior officials in the comptroller’s office, of which only two – Hevesi and his deputy Jack Chartier – outranked Loglisci, instructed the Chief Investment Officer to clear all decisions with Morris first, according to Loglisci.

When asked, Cuomo refused to comment on Hevesi’s status within the investigation, saying, “The words speak for themselves.”

Loglisci and Morris had been indicted in a 123-count filing, charging that they used illegal placement agents to hand out millions in funds for political favors and their own financial gain. Morris maintains his innocence.

Loglisci faces 16 months to four years in prison.

Reach Reporter Joseph Orovic at jorovic@queenstribune.com, or (718) 357-7400, Ext. 127.