The Commonwealth’s new treasurer, Joseph Torsella, banned the use middlemen to assist in connecting investment houses with public agencies. Torsella, in his first act after being sworn in, issued a policy directive banning the continued or future use of placement […]
The Commonwealth’s new treasurer, Joseph Torsella, banned the use middlemen to assist in connecting investment houses with public agencies.
Torsella, in his first act after being sworn in, issued a policy directive banning the continued or future use of placement agent agreements for contractors entrusted with the investment of public funds.
These placement agents are typically paid a finder’s fee for obtaining business for the investment house. Placement agents are also used to circumvent a federal pay-to-play law prohibiting investment houses from giving campaign donations.
Last year, former treasurer Pat McCord was embroiled in a bribery scandal with one such placement agent. Richard Ireland, a wealthy Chester County resident, is accused of offering McCord $500,000 in campaign donations in exchange for using his clients for investing.
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