New York State's ongoing money maker ongoing investigation into 'public pension fund' payola has notched another settlement - this time with a national law firm, related to its efforts to serve as a "placement agent."

The settlement between AG Andrew Cuomo and Manatt Phelps & Phillips LLP, announced earlier this month,  calls for the $550K payment and a 5-year ban on working with any public pension fund in New York.  Manatt was please to put the matter to rest. 

Manatt - which does legal work, lobbying and consulting with offices in CA, NY and Washington - earned $187,500 by helping arrange a $25mn investment in 2003 by CALPERS.  Some of Manatt's efforts to secure investments reportedly were made by John Faso, a former state legislative leader who was the Republican candidate for governor of New York in 2006.  He was identified in the settlement agreement as an "Albany-based partner/lobbyist" for Manatt.  [WSJ, 10/13]