The United States Securities and Exchange Commission is investigating former Massachusetts treasurer and gubernatorial candidate Timothy Cahill, as well as former staff members and campaign aides.
Subpoenas were delivered to the state treasurer’s office on Friday by the SEC, who have requested documents dating back to June 1, 2008 including emails, phone records and files relating to the relationship between investment firm Goldman Sachs and Cahill and his staff.
Documents relating to the state Lottery and School Building Assistance authority have also been requested.
The subpoenas come a mere month after the revelation that Neil Morrison, a vice president at Goldman Sachs, worked on Cahill’s campaign for governor.
According to The Boston Globe, it appears as though the investigation may be focusing on the relationship between Morrison and Cahill and his staff.
Before working at Goldman Sachs, Morrison was Cahill’s first deputy.
By working for both, depending on how much work he did for the campaign, Morrison may have violated federal security regulations and could potentially lose this broker’s license.
Public-finance bankers are restricted from contributing financially or otherwise to officials who issue public bonds by federal regulations, be they politicians or elected officials.
Morrison was also fired from Goldman Sachs, who notified state regulators on Dec. 20 of the situation.
According to a filing from the Financial Industry Regulatory Authority, Morrison was let go because he of participation in “outside activities without pre-approval.”
Although Morrison has downplayed his role in the campaign, he was identified as a “top political adviser” to Cahill during a lawsuit which he had filed against advisors who had quit his campaign in its midst of the election.
He will be leaving the firm officially in January.
As a result of the situation, Goldman Sachs ended two Massachusetts state bond deals because of the connection between Cahill and Morrison, who worked on several bond issuances together.
One of the prime examples of these was a state water-pollution control board, which Cahill chaired. A $455.9 million bond offering for Goldman Sachs was negotiated by Morrison for the board.
Specifically named in the subpoenas along with the former treasurer are his former chief of staff Scott Campbell, deputy treasurer Colin MacNaught, top campaign aide Amy Birmingham and political finance consultant Laurie Bosio.
Campbell and Bosio were involved in Cahill’s campaign for governor as well.
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