Senator’s office says article wrongly implies that Steven Rattner forged ties in New Mexico through Bingaman and his son
Sen. Jeff Bingaman’s office takes issue with a New York Times article published today that claims a man at the center of controversial investment deals in New Mexico and New York forged “close personal ties” in the Land of Enchantment through Bingaman and his son.
Citing “a person with knowledge of the meeting,” the Times article states that Bingaman met on at least one occasion with Steven Rattner, who has been linked to a New York pension scandal that has tentacles in New Mexico. A company Rattner was involved with until recently, Quadrangle Group LLC, won a lucrative contract in 2005 with the State Investment Council (SIC), which Gov. Bill Richardson heads. Rattner gave a total of $20,000 in contributions to Richardson’s 2002 and 2006 campaigns.
The Times article also reports that Quadrangle employed Bingaman’s son John until earlier this year.
That’s all true, said Bingaman spokeswoman Jude McCartin. But to cite that as proof that Rattner forged close personal ties in New Mexico implies things that aren’t accurate, she said.
“We really feel that Jeff was gratuitously mentioned in this article, because there is no connection between him and that company and anything that company may have done in New Mexico,” McCartin said. “His son had nothing to do with it at all.”
Bingaman and his son have never talked to any state officials, including the governor, about Quadrangle investments, she said, adding that Bingaman “has never talked to anyone about the state pension fund.”
“He does not meddle in anyone’s business,” McCartin said.
Rattner has given campaign contributions to dozens of Democratic members of Congress, including $2,000 to Bingaman in 2005, according to OpenSecrets.org. The list also includes Sen. Tom Udall of New Mexico, to whom Rattner gave $2,300 in 2007.
Whether Bingaman had close ties to Rattner is important because one primary question is how Quadrangle got involved in New Mexico.
‘An informal meeting’
John Bingaman was employed by Quadrangle as an analyst charged with looking for good investments. He didn’t work on securing investment deals, and McCartin said he got the job without the aid of his father. At the time, Jeff Bingaman didn’t know Rattner, she added.
Rattner and the senator have met once since John Bingaman was hired by Quadrangle, McCartin said. Jeff Bingaman was in New York and arrived at the Quadrangle offices to meet his son for lunch. John wanted to introduce his father to his boss.
“They had an informal meeting and it lasted a few minutes and Sen. Bingaman left. That’s it,” McCartin said.
“So, literally, that is the entire story of John and Jeff Bingaman as it relates to this company,” she said. “The article makes it look as if Jeff is the common link between Quadrangle and New Mexico. No.”
John Bingaman left Quadrangle earlier this year to start his own business, McCartin said.
The New York scandal
Rattner, who left Quadrangle in February to head President Barack Obama’s auto-bailout program, has been identified by national media outlets including the Times as the unnamed person in federal documents who allegedly arranged in late 2004 for Quadrangle to pay $1.1 million in exchange for business with the state of New York. Hank Morris is under indictment in the New York case, accused of using his position in that state’s comptroller’s office to shake down companies wanting to do business with the state’s pension fund, including Quadrangle.
Morris is accused of taking 95 percent of the money from Quadrangle as a kickback. He denies the allegations.
The alleged criminal activity in New York took place several months before the SIC in New Mexico voted to invest $20 million with Quadrangle. Morris was the third-party marketer who helped Quadrangle secure the New Mexico contract.
Rattner and Quadrangle have not been accused of wrongdoing in New York or New Mexico, and Morris has been accused of no wrongdoing in New Mexico. Quadrangle is reportedly cooperating with investigators in the New York case.