Ranch owners tied to N.Y. investment fraud

[Anonymous]

Ranch owners tied to N.Y. investment fraud



By RUFFIN PREVOST

Billings Gazette Wyoming Bureau

Published on Monday, June 15, 2009



CODY - Two wealthy investment executives with sprawling ranches near Yellowstone National Park are the subject of ongoing scrutiny in a widening public corruption investigation by federal and New York state prosecutors.



Hedge fund manager Barrett Wissman pleaded guilty in April to a New York felony charge of financial fraud for his role in an alleged kickback scheme to gain investments from the state's public employee pension fund.



Wissman, who owns a ranch near Luther, Mont., between Red Lodge and Roscoe, will pay $12 million in penalties and forfeiture to New York over three years in an agreement with the office of Attorney General Andrew Cuomo. He will be sentenced later.



David Leuschen, a Montana native, owns a ranch at Luther near Wissman's, as well as the sprawling Switchback Ranch on several thousands of acres in Wyoming and Montana, along the Clarks Fork of the Yellowstone River. He is under investigation by Cuomo's office, as well as the Securities and Exchange Commission, for his activities in securing investments from New York pension funds. No charges have been filed against him.



Cuomo announced Thursday an agreement with Riverstone Holdings, a New York-based private equity firm where Leuschen is a founder and senior managing director.



Riverstone has agreed to pay $30 million and abide by a code of conduct to resolve questions about its role in a scheme that investigators say involved funneling kickbacks disguised as bogus "placement fees" to state pension fund managers.



In discussing the agreement Thursday, Cuomo told reporters on a conference call that "Mr. Leuschen is not included in this resolution. It is still an open matter."



According to allegations by New York investigators and a separate civil complaint filed in March by the SEC, a "pay to play" system was set up by former pension fund chief investment officer David Loglisci and Hank Morris, a political consultant.



The SEC complaint alleges that Wissman contacted Leuschen to advise him that the pension fund was seeking to invest in the energy sector and that "retaining" Morris was key to landing an investment.



Leuschen arranged through a partner firm, The Carlyle Group, to have a third firm hire Morris, and Riverstone and Carlyle later received more than $350 million in investments from New York's General Retirement Fund, the complaint alleges.



The complaint also states that Leuschen personally invested $100,000 in "Chooch," a low-budget film produced by Loglisci and his brothers.



In an agreement with Cuomo's office, The Carlyle Group last month settled the case with the SEC for $20 million.



Leuschen was formerly a partner and managing director at Goldman Sachs investment bank, where he specialized in the energy sector.



He is known in Cody as the sponsor of the Switchback Ranch Purchase Award, an annual prize established in 1994 and given for a distinctive piece of furniture or other item selected from the Western Design Conference, and later the Cody High Style exhibition.



The selections are included in the Decorative Arts Collection of the Buffalo Bill Historical Center, where Leuschen is a director.



Leuschen also has served as a director of Natural Meats Montana, which markets high-grade beef to consumers and restaurants under the Montana Legend brand.



Wissman is a major investor in and chairman of IMG Artists talent agency, which represents top classical musicians, including violinist Itzhak Perlman.



The two men previously served together on the board of eVentures Group, a firm led by Wissman that was focused on investing in Internet-based communications businesses, according to a March 2000 press release from the company.



Cuomo said Thursday that new developments are expected in the ongoing case that has already seen criminal charges filed against Loglisci, Morris and others.



billingsgazette.net

 

[Tex]

Ranch owners tied to N.Y. investment fraud



By RUFFIN PREVOST

Billings Gazette Wyoming Bureau

Published on Monday, June 15, 2009



CODY - Two wealthy investment executives with sprawling ranches near Yellowstone National Park are the subject of ongoing scrutiny in a widening public corruption investigation by federal and New York state prosecutors.



Hedge fund manager Barrett Wissman pleaded guilty in April to a New York felony charge of financial fraud for his role in an alleged kickback scheme to gain investments from the state's public employee pension fund.



Wissman, who owns a ranch near Luther, Mont., between Red Lodge and Roscoe, will pay $12 million in penalties and forfeiture to New York over three years in an agreement with the office of Attorney General Andrew Cuomo. He will be sentenced later.



David Leuschen, a Montana native, owns a ranch at Luther near Wissman's, as well as the sprawling Switchback Ranch on several thousands of acres in Wyoming and Montana, along the Clarks Fork of the Yellowstone River. He is under investigation by Cuomo's office, as well as the Securities and Exchange Commission, for his activities in securing investments from New York pension funds. No charges have been filed against him.



Cuomo announced Thursday an agreement with Riverstone Holdings, a New York-based private equity firm where Leuschen is a founder and senior managing director.



Riverstone has agreed to pay $30 million and abide by a code of conduct to resolve questions about its role in a scheme that investigators say involved funneling kickbacks disguised as bogus "placement fees" to state pension fund managers.



In discussing the agreement Thursday, Cuomo told reporters on a conference call that "Mr. Leuschen is not included in this resolution. It is still an open matter."



According to allegations by New York investigators and a separate civil complaint filed in March by the SEC, a "pay to play" system was set up by former pension fund chief investment officer David Loglisci and Hank Morris, a political consultant.



The SEC complaint alleges that Wissman contacted Leuschen to advise him that the pension fund was seeking to invest in the energy sector and that "retaining" Morris was key to landing an investment.



Leuschen arranged through a partner firm, The Carlyle Group, to have a third firm hire Morris, and Riverstone and Carlyle later received more than $350 million in investments from New York's General Retirement Fund, the complaint alleges.



The complaint also states that Leuschen personally invested $100,000 in "Chooch," a low-budget film produced by Loglisci and his brothers.



In an agreement with Cuomo's office, The Carlyle Group last month settled the case with the SEC for $20 million.



Leuschen was formerly a partner and managing director at Goldman Sachs investment bank, where he specialized in the energy sector.



He is known in Cody as the sponsor of the Switchback Ranch Purchase Award, an annual prize established in 1994 and given for a distinctive piece of furniture or other item selected from the Western Design Conference, and later the Cody High Style exhibition.



The selections are included in the Decorative Arts Collection of the Buffalo Bill Historical Center, where Leuschen is a director.



Leuschen also has served as a director of Natural Meats Montana, which markets high-grade beef to consumers and restaurants under the Montana Legend brand.



Wissman is a major investor in and chairman of IMG Artists talent agency, which represents top classical musicians, including violinist Itzhak Perlman.



The two men previously served together on the board of eVentures Group, a firm led by Wissman that was focused on investing in Internet-based communications businesses, according to a March 2000 press release from the company.



Cuomo said Thursday that new developments are expected in the ongoing case that has already seen criminal charges filed against Loglisci, Morris and others.



billingsgazette.net

The fund managers and those who were paying them off should both be sent to jail for this. Their job is to look out for the fund's interests, not their own.

These guys are not ranchers, they are Wall Streeters masquerading as ranchers. They need to do the time in addition to paying penalties. The money to very wealthy people might mean little but the time behind bars would definitely get their attention.

Greed when it is used to do immoral and illegal things needs to be addressed with real penalties, not just slaps on the hand or fines that have no real effect on their lifestyle.

Tex

 

[MoGal]

Leuschen arranged through a partner firm, The Carlyle Group, to have a third firm hire Morris, and Riverstone and Carlyle later received more than $350 million in investments from New York's General Retirement Fund, the complaint alleges.



The complaint also states that Leuschen personally invested $100,000 in "Chooch," a low-budget film produced by Loglisci and his brothers.



In an agreement with Cuomo's office, The Carlyle Group last month settled the case with the SEC for $20 million.

Does anybody else see this??? They received more than $350 million and in return only pay a $20 million fine????? NO, NO, NO
the fine should be $350 million as well.

The same for those 2 brokeback wallstreet cowboys..... their fine should be the same as what they were paid.

 

[Tex]

Leuschen arranged through a partner firm, The Carlyle Group, to have a third firm hire Morris, and Riverstone and Carlyle later received more than $350 million in investments from New York's General Retirement Fund, the complaint alleges.



The complaint also states that Leuschen personally invested $100,000 in "Chooch," a low-budget film produced by Loglisci and his brothers.



In an agreement with Cuomo's office, The Carlyle Group last month settled the case with the SEC for $20 million.

Does anybody else see this??? They received more than $350 million and in return only pay a $20 million fine????? NO, NO, NO
the fine should be $350 million as well.

The same for those 2 brokeback wallstreet cowboys..... their fine should be the same as what they were paid.

Jail, Jail, Jail. Madoff needs company.

Tex

 

[Broke Cowboy]

Yup, those "ranchers" obviously made enough money off their "legitimate business concerns" to own "sprawling" ranches.

I guess those of us who work our asses of would have been fined the total value of our assets and then some.

Pays to have some serious connections to prevent jail - and at the same time be able to agree to the pay back.

Wish I could write a cheque for those amounts - even for the amount of a one year pay back that Wissman will make.

But - would I respect myself in the morning?

I wonder how many cows it would take to cover that amount of pay back?

Oh well, the rich get richer - even with the occaisional set back.

BC