Investment industry investigated by NY Attorney General and the SEC

New York Attorney General Andrew Cuomo and the U.S. Securities and Exchange Commission have started examining private-equity firms and hedge funds to determine if any of them made improper payments so as to receive investments from the state's pension fund.

The investigation is industrywide and includes companies mentioned last month as participating in more than 20 investment deals on the matter of improper payments made in order to receive investments from the state's pension fund, said a person familiar with the matter. 

The companies under investigation are involved with the New York State Common Retirement Fund, stated the source. It is also known that the deals included investments involving Aldus Equity Partners; Carlyle Group; Access Capital Partners; Odyssey Investment Partners; a hedge fund and a private-equity fund. 

Last month, David J. Loglisci, the state's former deputy comptroller and chief investment officer, and Henry "Hank" Morris, a top political adviser and chief fundraiser for former New York Comptroller Alan Hevesi, were alleged for selling access to billions of dollars held by the state pension fund to favored investment firms for bribe.

The New York Times reported the inquiry into Carlyle and other private equity firms and hedge funds earlier Tuesday.

"Carlyle has fully cooperated with the New York Attorney General's investigation. We understand this is an industrywide investigation and that we are not the focus of the investigation," said Christopher Ullman, a Carlyle spokesman. "Our agreements with placement agents, whether large Wall Street firms or smaller broker-dealers, call for all parties to abide by all laws to ensure the integrity of the investment process."