Thursday, May 10, 2012

Ex-Detroit mayor and former city treasurer charged in alleged pension scam

Ex-Detroit mayor faces charges in alleged pension scam – "DETROIT – This city's former mayor and his longtime friend are facing fresh allegations of wrongdoing in federal court, where the pair are accused of accepting lavish gifts in an influence-peddling scheme involving pension funds. In a federal Securities and Exchange Commission civil complaint filed Wednesday, former mayor Kwame Kilpatrick and Jeffrey Beasley — the former city treasurer — are accused of accepting gifts including private jet travel and golf outings from an investment adviser to the city's pension funds in exchange for favoritism. MayfieldGentry Realty Advisors, which a city pension fund fired last week, also was charged in the alleged scheme. In the SEC case, the former mayor and his fraternity brother are not facing criminal charges or any possible prison time. Instead, the SEC is seeking unspecified monetary penalties from the defendants and wants them to forfeit all of their alleged ill-gotten gains. The agency also is seeking a permanent injunction barring Kilpatrick and Beasley from ever participating in decisions involving investments in securities by public pension funds."

Detroit?--I'm shocked!


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