A former top investment officer for New York’s state pension fund admitted yesterday that he helped channel hundreds of millions of dollars in public retirement money to investment firms that paid kickbacks to other officials to get the business. David Loglisci pleaded guilty to a securities fraud charge, becoming the highest-ranking member of former-Comptroller Alan Hevesi’s administration to admit a role in the “pay-to-play” scheme. “Investment decisions were made in part according to political benefit for the comptroller, rather than exclusively in the best interests of the people,” Mr. Loglisci, 38, said in a statement read in court. “The political motivations for investment selection were chronic and institutionalized throughout the office, creating a culture of corruption at the highest levels.”
It is unclear exactly how high those levels may go. Attorney General Andrew Cuomo, who is conducting the continuing probe, declined to say whether he believed Mr. Hevesi was aware of the scheme. The investigation has spurred changes in state pension investment procedures. Mr. Hevesi oversaw the roughly $150 billion pension pool from 2002 until late 2006, when he resigned after pleading guilty in an unrelated case involving the misuse of a state driver. He has not been charged in the pension probe and has denied any wrongdoing. A lawyer representing him did not immediately return a phone call yesterday.