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Shhhh! Public Can’t Be Told Where the Public’s Money is Being “Invested”

Dennis Byrne 29 August 2013 No Comment

You should find this, from Corruption Busters, interesting:

What is the Illinois Teachers Retirement System hiding?

The Illinois legislature is working on pension reform while investor monies are walking out the back door into the pockets of politically connected folks who wired deals to obtain pension funds!

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Last month, Corruption Busters requested a FOIA (Freedom of Information Act) request for details on who was handling those funds.

Our July 2, 2013 FOIA request states “In accordance with FOIA, please provide in electronic PDF file format documentation related to contracts between TRS and Hopewell Ventures (David Wilhelm) and Healthpoint Capital Partners (initiated by convicted felon, Joe Cari) for private investment management of TRS funds.

Astonishingly, the Illinois Teachers Retirement System denied the request for the information:

The response from TRS dated Aug. 8, 2013 to Ms. West explains that the investment contracts and terms related to termination and management fees were DENIED under Illinois FOIA section 5 ILCS 140/7(1)(g) as proprietary trade secrets and confidential commercial or financial information.

The denial further states that there would be “Harm to TRS Members and Beneficiaries. If the records in question are disclosed to FOIA requesters, the chilling effect on the TRS investment program will negatively impact TRS’ ability to invest trust assets pursuant to the fiduciary duties imposed by Article 1 of the Illinois Pension Code, and the exclusive benefit rule of Section 401(a) of the Internal Revenue Code.”

This is unvarnished crapola. As Corruption Busters concludes:

“Why would a prudent person place any pension monies with private investors who have consistently racked up millions of dollars of losses and taken management fees that have diminished the value of the investments?”

Why, indeed?

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