The real culprit in Carlyle pension mess?

May 15, 2009 | By Jim Kim

The Carlyle suffered a big ugly blemish when it agreed to pay $20 million to settle charges of improper pension fund dealings by New York AG Andrew Cuomo. It will also stop paying fees to shady intermediaries who gather assets for it.

But Cuomo said "most of the objectionable activities" were conducted by Carlyle's partner, Riverstone Holdings, founded by former Goldman Sachs energy banker David Leuschen and others, reports the New York Times. He paid millions allegedly illegally to pension intermediaries working in New York and other states. Several people paid by Riverstone have pleaded guilty or been charged in the scandal. This plot thickens--it has already engulfed Steve Rattner's Quadrangle.

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