05/18/2009 05:12 am ET Updated May 25, 2011

What Really Happened Between Steve Rattner And The New York State Fund Scammers

As we described earlier, former Quadrangle partner Steve Rattner--now Obama's car czar--has been dragged into a New York state retirement fund kickback scandal that led to several indictments earlier this week.

The SEC's version of the story, as detailed here, makes it sound as though Rattner and Quadrangle bribed the state official who allocated the retirement fund (who has since been indicted). First, Quadrangle paid a $1.1 million "finder's fee" to an indicted co-conspirator. Second, a Quadrangle affiliate bought the distribution rights to a lousy movie produced by New York state fund employee's brother for $89,000.

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