Follow the Money- Out of the $10 Million the Illinois Teacher Retirement System (TRS) placed with Hopewell Ventures controlled by David Wilhelm, $2 Million was invested in a small privately-held software company, Itracs in 2004.
Corruption Busters' ongoing investigation of pension fund mismanagement and abuse previously reported that this was a direct payback to Thomas R. Reedy who hired Wilhelm after his stint with the Democratic National Committee. Reedy was also appointed to the Woodrow Wilson Center in 1999 by President Clinton at the behest of Joe Cari. No coincidence here. This is where Cari made contact with his future partners and formed Healthpoint Capital, recipient of $35 Million in TRS funds in 2003. Healthpoint continues to manage private investment retirement funds.
From day 1, Wilhelm's investments lost asset value and provided continuous negative returns. In March, 2013, Commscope (a Carlyle Group company) purchased most of the assets of Itracs. While not disclosing the terms of the purchase, it is apparent that Itracs was no longer capable of operating as an independent company. Wilhelm is no longer a board member.
What happened to the $2 Million invested in Itracs? As fiduciaries for teachers funds, the TRS directors can ill afford to lose monies entrusted to their care.
We urge the TRS to investigate this matter and take legal steps to recover teacher pension funds improperly placed with this company by a wired deal engineered by convicted felons Stuart Levine and Joe Cari.