Elliott Broidy, the former Finance Chairman of the Republican National Committee, plead guilty yesterday to offering $1 million bribes to officials with New York state's pension funds. In return, Broidy got a $250 million investement in the Wall Street firm he worked for:
Broidy, who also resigned as chairman of Markstone Capital Partners, the private equity firm, admitted that he had paid for luxury trips to hotels in Israel and Italy for pension staffers and their relatives -- including first-class flights and a helicopter tour. Broidy funneled the money through charities and submitted false receipts to the state comptroller's office to cover his tracks.
The California financier, who was the GOP finance chairman in 2008, also paid thousands of dollars toward rent and other expenses for former "Mod Squad" star Peggy Lipton, who was dating a high-ranking New York pension official at the time.
The California financier, who was the GOP finance chairman in 2008, also paid thousands of dollars toward rent and other expenses for former "Mod Squad" star Peggy Lipton, who was dating a high-ranking New York pension official at the time.
Broidy now faces up to four years in jail and has to return some $18 million. Since the scandal with New York's pension fund broke, it has so far led to five guilty pleas and $100 million in public funds have been returned. However, Pro-Publica -- which has been doggedly covering the story -- notes that nothing has been done to prevent future corruption:
The system that allowed corruption to flourish in New York, where $110 billion in retirement savings are controlled by a sole trustee with no board oversight, is still in place.
