California Firm Split Fees With Figure in N.Y. Pension Scandal

A prominent Los Angeles investment firm shared fees from pension fund deals in New York and California with Hank Morris, the former political consultant under indictment (PDF) for selling access to New York’s $122 billion retirement fund, ProPublica has learned.

Investigators say they are focusing on the role of Wetherly Capital Group, which allegedly funneled $314,000 in checks to Morris through an intermediary firm he owned. Wetherly received up to $3 million in fees for one pension deal in New York, investigators say. In their indictment of Morris, authorities described the checks from Wetherly as “proceeds of criminal conduct.”