Former Car Czar Pays Steep Settlement Fine

Posted on Dec 30, 2010

AP /J. David Ake

Steven Rattner, former head of the Obama administration’s task force on the auto industry, delivers the keynote address on the auto bailout at the National Press Club in Washington in October 2009.

President Obama’s erstwhile “car czar,” Steven Rattner, has paid a high price—$10 million, to be exact, not to mention his former position in the current administration—for his investment group’s involvement in a shady pension fund scheme. The news that Rattner had ponied up the fine to the New York attorney general’s office hit the wires Thursday—just in time for the New Year’s holiday.  —KA

CNN Money:

Rattner was accused of a “pay-to-play” scheme involving New York’s pension fund, in which Rattner’s Quadrangle allegedly gave kickbacks to officials if they directed state pension money to the fund.

Steven Rattner, founding partner of Quadrangle and former Obama administration ‘auto czar’ settled a pension fund scheme allegation for $10 million.

In addition to the fine, Rattner was also banned from appearing before any public pension fund within New York for five years.

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