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SUPREME COURT OF THE STATE OF NEW YORKCOUNTY OF NEW YORKTHE PEOPLE OF THE STATE OF NEW YORK-against-HENRY “HANK” MORRIS andDAVID LOGLISCI,Defendants.
INDICTMENT No. 25/2009COUNT ONEENTERPRISE CORRUPTION
THE GRAND JURY OF THE COUNTY OF NEW YORK, by this Indictment,accuses the defendants HENRY “HANK” MORRIS and DAVID LOGLISCI of the crime of 
ENTERPRISE CORRUPTION, in violation of Penal Law §460.20(1)(a)
, as follows:The defendants, in the County of New York and elsewhere, from in or aboutNovember 2002 through in or about July 2008, having knowledge of the existence of acriminal enterprise (hereinafter, the "MORRIS GROUP"), and the nature of its activities, andbeing employed by and associated with the MORRIS GROUP, intentionally conducted andparticipated in the affairs of the MORRIS GROUP by participating in a pattern of criminalactivity.The MORRIS GROUP was a group of individuals, including defendants HENRY“HANK” MORRIS, DAVID LOGLISCI, and others known and unknown to the grand jury,sharing a common purpose of engaging in criminal conduct, associated in an ascertainablestructure distinct from a pattern of criminal activity, and with a continuity of existence,structure and criminal purpose beyond the scope of individual criminal incidents.
 
INTRODUCTION
The New York State Comptroller (“the Comptroller”) is a statewide elected officialand is the State’s chief fiscal officer. Among other things, the Comptroller is charged by theNew York State Constitution with operating the Common Retirement Fund (“CRF”), thestatewide retirement system, valued at over 140 billion dollars as of March 31, 2006. Thissystem provides services to over 340,000 retirees and their beneficiaries, over 650,000members, and 3,000 employers, and is one of the world’s largest public pension funds. TheComptroller is sole trustee of the CRF but typically appoints a Chief Investment Officer andother investment staff members who are vested with authority to make investment decisions.At all times, the Comptroller and his appointees owe fiduciary duties to the CRF and itsmembers and beneficiaries, and are required to make investment decisions solely in the bestinterests of the CRF and its members and beneficiaries.In November 2002, Alan Hevesi was elected to serve as Comptroller, and he took office on January 1, 2003. Prior to and after the 2002 election, defendant HENRY “HANK”MORRIS served as Mr. Hevesi’s chief political consultant and advisor. Upon Mr. Hevesi’staking office in 2003, MORRIS began to exercise control over certain aspects of the CRF,including the alternative investment portfolio (valued at approximately 9.8 billion dollars).MORRIS was instrumental in removing and promoting certain members of the CRF executivestaff. In particular, in or about April 2004, MORRIS participated in the decision to removethe Chief Investment Officer of the CRF and replace him with defendant DAVID LOGLISCI.The promotion of LOGLISCI was motivated in part by a view that LOGLISCI wouldaccommodate the personal and business interests of MORRIS and his associates.2
 
Over the next four years, defendants MORRIS and LOGLISCI and others engaged in aseries of investment transactions involving the CRF in which they placed their interests abovethe interests of the CRF and its members and beneficiaries. In effectuating these investments,defendants MORRIS and LOGLISCI made materially false and misleading representationsand material omissions, and concealed material information, including their actual andpotential conflicts of interest.Defendants MORRIS and LOGLISCI favored deals for the CRF for which MORRISand his associates would earn fees. In certain transactions, MORRIS acted as a placementagent on behalf of funds seeking investments from the CRF, and then earned fees when, withLOGLISCI’s approval, the CRF made the investments. On these investments, defendantsMORRIS and LOGLISCI concealed MORRIS’s involvement, including the fact that he wasearning fees, from CRF investment staff and others.In yet other transactions, defendant MORRIS inserted his associates as placementagents as a reward for political favors. Other times, defendant MORRIS inserted associateswho then shared the fees with MORRIS. As with the other transactions, defendants MORRISand LOGLISCI concealed MORRIS’s involvement from CRF investment staff and others,and at times even from the funds seeking investments from the CRF.Defendant LOGLISCI also solicited from defendant Morris and others doing businesswith the CRF, investments and other contributions to a film, “Chooch,” produced byLOGLISCI’s brother in which LOGLISCI had a financial interest. These benefits were notdisclosed to the CRF executive staff, ethics officers, or members.3
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