Feds Reported Examining Detroit Pension Investments

January 4, 2010 (PLANSPONSOR.com) – Federal investigators are looking into several investments by city of Detroit pension boards, according to a news report.

The Detroit Free Press said the U.S. Securities and Exchange Commission and a federal grand jury have demanded records on at least two pension deals, which the newspaper said totaled $40 million.   

Federal authorities are also reportedly examining the role of pension investment adviser, Adrian Anderson of North Point Advisors, but the newspaper said Anderson’s lawyer, Anthony Chambers, refused to discuss the investigation. According to the news report, Anderson was involved with several pension investments that lost millions of dollars.

“Obviously, there is an investigation relative to the pension boards and some of the investments that Mr. Anderson has been involved with,” Chambers told the newspaper. “Obviously, there is an interest in North Point Advisors and Mr. Anderson in his professional capacity.”

Meeting minutes from the police and fire pension board indicate trustees approved a $15,000 payment to Chambers for his legal work relative to the grand jury proceedings.