Markstone Capital Partners Group LLC has made significant progress in its attempts to end the scandal involving former chairman Elliot Broidy, who resigned after reaching a plea bargain in the bribing of state pension officials in the US, in order to obtain investment in the company.

Markstone has reached an agreement with New York State Attorney General Andrew Cuomo by which the Israeli private equity fund will pay $18 million over the next three and a half years to the New York State pension fund. In exchange New York State will end legal proceedings against Markstone. The payment will be for management fees to the New York State pension fund. Markstone's managing directors are Ron Lubash and Amir Kess.

The significance of the settlement is that New York State will allow Markstone to carry on with business as usual .

Broidy himself is not party to the agreement and legal proceedings against him will continue.

Under the terms of the settlement Markstone will pay $6 million by the end of the year in four equal payments of $1.5 million. Markstone will pay $3.5 million in 2011, $7 million in 2012, and $1.5 million in the first half of 2013. Markstone agreed not to seek compensation or damages for the payments.

Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2010

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