From the NY Post:
Comptroller John Liu has awarded $6 million in contracts to manage city pension funds to a firm under investigation by New York federal and state prosecutors over claims it ripped off millions from public-employee pension systems around the world, The Post has learned.
Boston-based State Street Corp. has faced litigation from state governments in Washington and California, as well as the United Kingdom, dating back to 2009 — each alleging the company fraudulently overbilled their retirement funds during so-called “foreign exchange” trades.
But that didn’t stop Liu from doing business with the company — his administration disclosed the contract in Friday’s public record.
His office awarded three contracts totaling $6.141 million to State Street Global Advisers, the company’s investment arm, the public notice said.
In 2010, State Street forked over $12 million to settle claims by the state of Washington over accusations the firm overcharged for its foreign-investment transactions of pension money over a 10-year period.
And in 2009, the California attorney general filed suit, saying State Street committed “unconscionable fraud” and “raided” $56 million from its pension funds over eight years. That case is pending.
And then there's this:
“I don’t believe it’s our campaign’s responsibility or any campaign’s responsibility to verify the home address, to verify the work address, to essentially run a credit check on any donor,” Liu said in response to allegations that his campaign made use of straw donors who funneled illegal contributions from wealthy individuals into the campaign. “Do we operate differently than other campaigns? Absolutely not.”