Deal cut in pay-to-play case

NY Attorney General Andrew Cuomo has settled with two L.A. private equity firms in connection with an ongoing corruption probe. Wetherly Capital Group pays $1 million to the NY state Common Retirement Fund, and Markstone Capital, founded by one-time GOP player Elliott Broidy, will return $18 million. Whetherly also agreed to stop being a placement agent. From the LAT:

According to Cuomo's office, Wetherly was paid in excess of $1.3 million in fees for directing New York pension funds to three California private equity firms: Ares Management, Freeman Spogli & Co. and Levine Leichtman Capital Partners.

[CUT]

Broidy, beginning in November of 2002, gave more than $1 million in gifts, political contributions and other benefits "to top decision makers" as well as their friends and family members, with the intent to influence state officials to invest in a Markstone private equity fund, Cuomo's office said. In return, Markstone got a $250-million investment and earned $18 million in management fees.

Broidy has already pleaded guilty to charges he paid $1 million to New York officials to win $250 million in investment capital.