Former Obama Car Czar Slammed in Pension Probe

In a statement, Carlyle said it "was unaware of any improper conduct" and "was victimized by Hank Morris' alleged web of deceit." Carlyle said it intended to file suit against Morris and has "cooperated extensively and voluntarily" with Cuomo.

More than 100 firms have been subpoenaed by Cuomo in the pay for play probe which has been ongoing since 2007.

"This is the nexus of private sector fraudulent operators meeting government and political fraudulent operators," said Cuomo in 2009, when he announced the sweeping issuance of subpoenas to investment firms and their agents.

Under federal and NY state law, any agent that brokers deals between the private investment firms seeking pension fund money and the government or political officials doling out the money, must be a registered securities broker, with the occasional exception allowed. Cuomo's investigation, however, found that 40-50% of so-called 'placement agents' seeking investments from the NY State and City pension funds are unregistered.

"The troubling pattern of unlicensed agents highlights yet another systemic weakness in New York's pension fund," said Cuomo, "creating a situation which is fraught with peril and prone to abuse. This investigation will continue until public trust has been restored and reform has been achieved."

"It's the wild west of government relations and financial brokers," said Cuomo.

And on tax day, Cuomo's Special Counsel Linda A. Lacewell acknowledged during the call that "as a matter of logic" based on the facts set forth the investigation is also probing conduct involving the state comptroller's office under its current head.

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