NY AG sues former car czar in pay-to-play scandal
  • Former Obama administration official Steven Rattner was sued by the US Securities and Exchange Commission (SEC) and New York Attorney General Andrew Cuomo Thursday for his role in a pay-to-play scheme involving New York's pension fund.

    Rattner, the former auto czar, agreed to pay $6.2 million and to a two-year ban from associating with any investment adviser or broker-dealer to settle the SEC allegations, the SEC said Thursday.

    Separately, Cuomo's office filed two lawsuits against Rattner, seeking at least $26 million and an immediate lifetime ban from the securities industry.

    "Steve Rattner was willing to do whatever it took to get his hands on pension fund money including paying kickbacks, orchestrating a movie deal, and funneling campaign contributions," said Cuomo, who is the incoming governor of New York. "Through these lawsuits, we will recover his ill gotten gains and hold Rattner accountable."

    A lawyer for Rattner did not immediately return a phone call seeking comment Thursday.