Sunday, July 31, 2016

Updated Story


According to Crain's writer, Lynne Marek (May 21, 2016) 
(click here for a link to the complete story)

"Democratic heavyweight David Wilhelm tapped Illinois pension funds and the federal government to raise a $105 million venture fund, but it has lost more than half its value even as he and his partners collected millions of dollars in fees.
The partners launched Chicago-based Hopewell Ventures in 2004 with backing from a Small Business Administration program that primed the pump for other investors. Today Hope-well owes the federal program $30 million and seems to offer its other investors, which include the biggest pension fund in Illinois, little prospect of a return on their investments."
Corruption Busters reported the plot by David Wilhelm and convicted felon Joe Cari to approach pension funds solely for the purpose of garnering management fees without regards as to safeguarding the investment monies.
The TRS responded to a substantial number of FOIA requests to reveal the extent of these reckless investments that totaled over $30 Million of teacher retirement funds and resulted in massive losses. We requested that TRS pull these investments from these shaky deals and they repeatedly refused. 
This is certainly a breach of fiduciary and we encourage teachers to initiate a lawsuit against the trustees of the TRS and management in order to compel Wilhelm and Cari to reimburse the funds for the management fees.

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