* Rattner has "fiercely resisted" proposed penalty-NYT
(Adds SEC and Rattner decline to comment)
NEW YORK, June 2 The U.S. Securities and
Exchange Commission is moving to bar high-profile investor
Steven Rattner from working in the securities industry for up
to three years, the New York Times reported on Wednesday.
Rattner, who founded private equity firm Quadrangle Group
LLC but left in 2009, is being investigated for his role in a
suspected kickback scheme, and has resisted the proposed
penalty from the SEC, the Times said, citing three people told
of the discussions.
Representatives for Rattner and the SEC declined to comment
on the story.
New York Attorney General Andrew Cuomo in April said that
Quadrangle and four other defendants agreed to pay nearly $12
million to settle over their involvement in the New York State
Common Retirement Fund, the third-largest U.S. public pension
Investigators alleged that Quadrangle won a $100 million
investment from the pension fund by engaging in improper "quid
pro quo" arrangements.
The SEC and Cuomo have suggested that Rattner improperly
paid off a political operative to win lucrative business from
the New York state pension fund, the paper said, including an
incident where he arranged to help distribute a low-budget film
for the brother of a pension fund official.
The paper said Rattner was left out of the Quadrangle
agreement because he declined the SEC's proposal that he be
barred from working on Wall Street. Rattner left the firm in
2009 to briefly run U.S. President Barack Obama's auto bailout
Under the proposed SEC settlement, Rattner would most
likely be barred from advising New York Mayor Michael
Bloomberg, the Times said. Rattner is playing a role in
creating an investment office for Bloomberg, which will oversee
billions of dollars for the mayor's new philanthropic
(Reporting by Franklin Paul, editing by Maureen Bavdek)