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Mass. Treasurer Confirms SEC Request For Documents

This article is more than 12 years old.
Former Massachusetts Treasurer and gubernatorial candidate Tim Cahill at his Quincy campaign headquarters in February. (AP)
Former Massachusetts Treasurer and gubernatorial candidate Tim Cahill at his Quincy campaign headquarters in February. (AP)

The U.S. Securities and Exchange Commission is investigating the relationship between former Treasurer Timothy Cahill, his official and campaign staffs and a former aide who went on to work for Goldman Sachs.

Newly installed Treasurer Steve Grossman confirmed Monday he had been served with a subpoena seeking documents and is "cooperating fully and promptly," according to a statement. The documents include e-mails, phone records, schedules, files and memos dating back to June 1, 2008.

The subpoena was first reported Monday by The Boston Globe.

The newspaper said the subpoena centered on possible improper politicking and communications between the Cahill camp and former aide Neil Morrison.

SEC regulations restrict bankers involved in public-finance deals from making contributions to political figures or elected officials who issue public bonds. A broker could lose his license for a violation, and a firm could be banned for two years from deals with any public official it is deemed to have supported.

An e-mail released last fall, amid a lawsuit Cahill filed against aides who quit his unsuccessful campaign for governor, showed Morrison communicating with the campaign staff through a private e-mail account during business hours - a potential in-kind political donation that could violate federal securities rules.

In a mid-afternoon e-mail last August, Morrison accepted a contract - on behalf of Cahill - with political strategists John Weaver and John Yob. They later quit the campaign and Cahill sued them, prompting a counterclaim by another former aide that triggered the release of the Morrison contract e-mail.

Paul Loscocco, who also quit as Cahill's running mate, said in a follow-up statement that Morrison had a robust campaign role. He said he served as Cahill's "top political adviser" and also coordinated with a top aide to Democratic Gov. Deval Patrick on a negative ad strategy against both men's Republican opponent, Charles Baker.

Morrison helped elect Cahill treasurer in 2002, and then he rose to first deputy before leaving the office in 2006 for the investment banking world. He worked most recently at Goldman's Boston office. The Globe reported previously that Morrison helped negotiate a $456 million bond deal last spring with the Massachusetts Water Pollution Abatement Trust, at which time Cahill controlled the panel.

Goldman ended up receiving an estimated $2 million in fees for the deal.

Goldman subsequently asked to be excluded from managing bond sales for the Massachusetts Bay Transportation Authority and the Massachusetts Housing Finance Agency, officials from both agencies said. The firm did not explain why, they said. Morrison is also leaving Goldman.

Cahill declined to comment on the subpoena, as did former senior aides Scott Campbell and Amy Birmingham, who are among the group covered by the document request.

Goldman spokesman Michael DuVally also declined comment. Morrison could not immediately be reached for comment.

Grossman, a Democrat, was sworn in last week to replace Cahill, a former Democrat who ran as an independent for governor.

While pledging to maintain a "transparent and accountable office," Grossman said: "Due to the nature of this matter, we cannot comment further."

This program aired on January 24, 2011. The audio for this program is not available.


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