NEW YORK — The Carlyle Group, one of the nation’s largest private equity funds, has agreed to pay $20 million and make other reforms to resolve its role in an influence-peddling scandal at New York’s public pension fund.

The settlement will bring an end to the possibility that the company, its executives or employees would face charges in the case, New York Attorney General Andrew Cuomo said.
Under the deal announced yesterday, Carlyle would effectively ban its employees from making campaign contributions to public officials who have sway over pension fund investment decisions. Carlyle, which ownes Hawaiian Telcom, also reiterated its previous pledges to stop hiring politically connected middlemen to help land government pension fund business.
Cuomo said the rules would limit the possibility that corrupt officials overseeing government investment funds would try to shake down the company for money in exchange for business.
“It ends pay to play. It bans the selling of access. It puts the political power brokers out of business,” he said.
Carlyle was one of several firms whose conduct was questioned during a two-year investigation of investment decisions at New York’s public employee retirement fund during the tenure of former state Comptroller Alan Hevesi.