Following Pando's reporting, New Jersey to launch pay to play investigation into General Catalyst
Uh oh. CNN/Fortune is reporting that New Jersey is launching an investigation into whether General Catalyst violated state pay to play rules when it failed to disclose a political donation from partner Charlie Baker. The donation was first revealed by Pando's David Sirota, who today published a list of dozens of other firms connected to political donations.
According to Fortune's Dan Primack, who, having spent weeks telling Pando this was a non-story, now appears to forgotten that we broke it...
Sources familiar with the situation now tell Fortune that the New Jersey Investment Council is asking state attorneys to review the situation, in order to render a legal opinion on whether or not Baker qualifies as an investment manager under state law.Great job, Dan.
It remains unclear exactly which attorneys will be asked to render the opinion. One option could be to use counsel within a separate NJ Treasury department, or possibly one within the state Attorney General's office.
As MSNBC's Rachel Maddow noted in her report on Pando's investigative work, New Jersey is one of the handful of states where the governor appoints the Attorney General. Thus, if the legal review is done by the Attorney General's office or the Christie-controlled New Jersey Treasury Department, it will be a case of the Christie administration investigating itself, meaning there will be an obvious incentive for the investigators to declare that the law hasn't been broken.
However, it is possible that the state will appoint an independent counsel to investigate the situation.
Pando's investigation of the relationship between the financial industry, politicians and pension funds continues.
[Image credit: Brad Jonas for Pando]