NEW YORK - David Loglisci, the former Chief Investment Officer at the Office of the New York State Comptroller, who was indicted last year along with co-defendant Henry “Hank” Morris, pled guilty to a Martin Act felony for his role in the corruption of the New York State Common Retirement Fund (CRF) and will cooperate in the ongoing investigation.

Today’s plea is part of a more than two-year ongoing investigation into corruption involving the Office of the State Comptroller and the Common Retirement Fund. The charges to date allege a complex criminal scheme involving numerous individuals operating at the highest political and governmental levels under former Comptroller Alan Hevesi, in which the State pension fund was used as a piggy bank for the Comptroller’s chief political aide and a favor bank for political allies and other friends.

“With today’s plea, a former top official overseeing the state’s single largest asset admitted that decisions were driven by politics and greed - not the best interests of the fund or its beneficiaries,” said Attorney General Andrew Cuomo. “Not only were pension recipients defrauded but so were the taxpayers across New York who are ultimately responsible for sustaining the fund. A culture of corruption permeated the fund and shows how vulnerable it can be to graft and exploitation without dramatic reform.”

From January 2003 through May 2007, Loglisci’s position at the Office of the State Comptroller granted him the authority to recommend investments for the CRF, an authority he was duty-bound to exercise in the best interests of the CRF’s members and beneficiaries.  Today, Loglisci acknowledged abdicating his authority to Henry “Hank”

Morris, the top political advisor to former New York State Comptroller Alan Hevesi, in order to help steer hundreds of millions of dollars worth of investment deals to Morris and to politically favored firms.

As part of his plea, Loglisci acknowledged breaching his fiduciary duties and violating the public trust by making investment decisions according to political benefit for the Comptroller, rather than in the best interests of the CRF’s members and beneficiaries.  Loglisci admitted that he understood, but did not disclose, that Morris played three conflicting roles at the CRF:  He was the paid outside political consultant to the sole trustee; he had a financial interest in multiple proposed alternative investments; and he made investment decisions, including with respect to deals in which he had a financial interest. 

Loglisci pleaded guilty in the State Supreme Court, New York County, and was released on his own recognizance with travel restrictions. He faces a possible sentence of up to 1 1/3 to 4 years in prison for the charge of a felony violation of the Martin Act, a Class E felony.