The Democrats’ new poster boy for the pay-to-play scandals is State Treasurer Richard Moore. In a scalding exposé Forbes Magazine tells how Moore, who solely controls the state’s $73 billion retirement fund, is bankrolling his campaign for Governor. Here’s a copy of the Forbes article.

Moore’s version of pay-to-play works like this: In effect he says to investment fund managers, I’ll give you state money to invest and pay you fees – and by the way wouldn’t you like to contribute to my campaign for Governor?

In just six years – since he took office – the amount Moore pays in fees has soared a staggering six fold – to $116 million a year.

Moore is unapologetic. He told Forbes, “I didn’t set up the rules, but I play by the rules. We do not have a culture of pay-to-play in the treasure’s office in the state of North Carolina.” No. It’s not a culture. It’s a way of life.

Here’s an example.

Eugene McDonald is a member of Moore’s five-person “investment committee.” He helped Moore persuade the legislature to allow him to invest more heavily in hedge and private equity funds. After the legislature agreed, Moore handed Quellos Asset Management in Seattle $400 million to invest. Quellos’ investment chief: Eugene McDonald.

Moore’s explanation sounded a lot like Jim Black on why he appointed Kevin Geddings to the Lottery Board. First Moore said McDonald didn’t join Quellos until after the fund got state pension money. That turned out not to be true. Next Moore hedged, saying, unabashedly, he hadn’t known McDonald worked for Quellos, but it wouldn’t have made any difference.

Moore has paid Quellos a whopping $6.1 million in fees, and, of course, Quellos’ executives have contributed generously to his campaign. How did Quellos investments do?

“It earned North Carolina a middling 7% annually (versus 11% for the SAP 500) the past three years,” Forbes reports. The hedge and equity funds Moore pushed have “returned 2.3% annually against a benchmark of 7.7%.”

But twenty-eight of the “lavishly paid funds’ managers” have given $211,700 to Moore’s campaign.

How did the rest of the states investments do? It’s hard to tell. Moore is supposed to provide the legislature “with a state-mandated report detailing his managers’ results each year.” He hasn’t done it in six years.

Jim Black took $29,000 from chiropractors in men’s rooms. Compared to Richard Moore he’s is a piker.

The state legislature should invite Moore and his contributors/money managers to a hearing in Raleigh, put them under oath and turn on the TV lights. Then the Governor and Democratic leaders of the Senate and House can drive a spike through the heart of pay-to-play by impeaching Richard Moore.

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