On the November 2 episode of Comment on Kentucky, host Ferrell Wellman commented on the huge fundraising advantage the House Democrats had and asked Tom Loftus about it. He asked directly where the caucus and Kentucky Family Values got their gobs of cash. Loftus glossed over the question because he either did not want to discuss pensions or had no solid idea at the time where the money came from… since it was not well disclosed.
In 2011, the Kentucky House Democratic Caucus (and friends at Kentucky Family Values?) decided to hire some out-of-state fundraising big dogs. They turned to their placement agent buddy, Marvin Rosen, as we have often discussed.
Rosen turned them on to the national expert on extracting campaign contributions from pension investment managers and placement agents. That guy? David Contarino? His co-defendant (Warning: External PDF Link) in the New Mexico placement agent scandal who coincidentally relocated to Kentucky.
More on that here:
At the same time Marc Correra was getting paid millions of dollars in fees for helping secure investments from two state agencies run by Gov. Bill Richardson appointees, he was in business with Richardson’s presidential campaign manager and former chief of staff, Dave Contarino. The payment of those so-called third party placement fees to Correra, along with decisions by the State Investment Council and Educational Retirement Board about which companies would get the state business that generated them, figure prominently in ongoing federal regulatory and criminal investigations.
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Placement Agent Marvin Rosen was active in both Kentucky and New Mexico
Anthony Correra, a former New York stockbroker who surrendered his license to resolve an insider trading case, was a close friend and adviser of Richardson, whose two terms as New Mexico governor ran from 2003 through 2010, and was instrumental in the appointment of Gary Bland as state investment officer. Anthony Correra also lent then-ERB Chairman Bruce Malott $360,000 and arranged to secure a line of credit up to $720,000 for a Las Cruces business owned by former Richardson chief of staff and campaign manager David Contarino and his wife. Meanwhile, Marc Correra shared in more than $22 million worth of fees paid to him by companies that were awarded business by the State Investment Council and the ERB.
Correra is listed as the third-party placement agent on the SIC’s $50 million investment into the Vanderbilt Financial Trust. ……. Foy claims he was pressured by Malott, at Contarino’s behest, to place business with Vanderbilt because of political considerations. The ERB board voted to make the investment.
The suit claims Bland and others pushed for the Vanderbilt investment so Marc Correra, a Santa Fe investor, would receive third-party marketing fees — which the suit claims are “kickbacks.” Correra, son of Richardson contributor Anthony Correra, shared in as much as $22 million in fees for helping money management firms win state business in handling investments for the ERB and SIC. Among the changes in the Foy lawsuit as a result of the new filing is that the wives of several defendants — including Bland, former Richardson chief of staff Dave Contarino, ERB chairman Bruce Malott and the Correras — are now named as defendants.
Investigators reviewed whether Richardson’s former chief of staff, David Contarino, played a role in the hiring of CDR.
On top of that, he admitted taking a $10,000 cash kickback from Marc Correra in return for pushing ERB investment business his way — deals for which Marc Correra made millions of dollars in fees………. The ERB lawsuit alleges Aldus made recommendations intended to enrich Correra at the expense of the company’s client in order to garner the benefits of Correra’s “political influence.”
Marc and Anthony Correra have been at the center of the controversy over alleged pay-to-play practices involving state investments. Anthony Correra also lent then-ERB Chairman Bruce Malott $360,000 and arranged to secure a line of credit up to $720,000 for a Las Cruces business owned by former Richardson chief of staff and campaign manager David Contarino and his wife. Meanwhile, Marc Correra shared in more than $22 million worth of fees paid to him by companies that were awarded business by the State Investment Council and the ERB. Those transactions are the focus of civil lawsuits, along with criminal and regulatory investigations.
Forgive us for being remotely suspicious.