Former New York Comptroller Alan Hevesi is set to plead guilty to a crime in that state’s long-running pay-to-play criminal investigation, the New York Times reported Tuesday.
Hevesi’s name might not mean anything to New Mexicans, but his guilty plea could have repercussions here in the state.

New York’s ongoing investigation into Hevesi and how he ran that state’s comptroller’s office, which invests taxpayer money, has focused on how he and others in his office picked funds in which to invest and on several occasions the investigation’s trail led to New Mexico. The New York inquiry appears to have sparked the ongoing federal investigations into how New Mexico‘s investment agencies picked what funds to invest in.

So the question is, if Hevesi pleads guilty, what kind of cooperation, if any, will the former New York comptroller be required to give federal investigators currently looking at New Mexico’s state investment agencies? Maybe he has information. Maybe he doesn’t. Maybe no agreement like that will be struck. Only time will tell.

But if Hevesi does plead guilty as the New York Times is predicting people following the web of investment scandals stretching from New York to New Mexico and California will wonder what will be the next shoe to drop.

The Times notes the New Mexico connections with a small paragraph in its story:
The activities of Mr. Hevesi’s sons have also drawn scrutiny: investigators have questioned why an obscure firm operated by Daniel Hevesi was paid more than $1 million in fees for deals with pension funds in New York City and New Mexico, and whether any legitimate work was done for the payments.
Among the allegations listed in a criminal complaint issued by the office of New York Attorney General Andrew Cuomo last year were that the founder of New Mexico’s former financial adviser, Aldus Equity, helped Dan Hevesi, the former comptroller’s son, win a lucrative contract in New Mexico for a firm he was representing in return for Aldus’ increased business in New York. At the time, Dan Hevesi was acting as a third-party marketer.

Hevesi received $250,000 in third-party marketing fees related to one New Mexico investment deal through the New Mexico State Investment Council, state records show.

Henry, “Hank” Morris, one of Alan Hevesi’s most trusted aides who was charged with 123 counts in New York’s criminal investigation last year, received at least $150,000 in third-party marketing fees related to New Mexico investment deals, the documents also show.

Aldus’ founder, Saul Meyer, pleaded guilty to securities fraud last year  in the New York criminal probe.
There are other curious New Mexico connections to the New York scandal.

David Loglisci, the former chief investment officer for New York state’s pension fund who worked for Alan Hevesi, pleaded guilty to securities fraud in New York earlier this year. You might remember Loglisci as the executive producer of a film shot in New Mexico titled “Chooch,” which was made by one of his brothers. The Albuquerque Journal’s Tom Cole wrote about this connection more than a year ago.  The movie featured, among other things, a nine-pound dachshund named Kiwi Limone.

Several prominent investors seeking pension fund business in New York put money into the movie-making effort, according to published reports.

It’s unclear how, if at all, Loglisci might have been involved with New Mexico’s investment agencies, however.

By Trip Jennings