Compliance February 9, 2003

Judge OKs Pension Fund Recovery From Ex-Arizona Governor

September 26, 2001 (PLANSPONSOR.com) - A US bankruptcy judge approved a settlement ordering former Governor Fife Symington to pay at least $2 million to six union pension funds to end a dispute over a $10 million loan obtained by Symington to develop a commercial center in 1990.

Reported by

editors@plansponsor.com

In February, the judge had found that the former Arizona governor had intentionally given pension funds false financial information as to his worth. It was also found and that the funds relied on that information in making the loan.

The judge ordered Symington to pay $17.4 million to the pension funds in connection with the failed development deal. The amount included accrued interest.

Under the terms of the settlement agreement, the negotiation of which began at the judge’s request, Symington will pay the greater of $2 million or 40% of the money he will inherit when his uncle dies.

Case History

Symington filed for Chapter 7 personal bankruptcy in October 1995 and resigned as governor in 1997 after he was convicted of multiple counts of criminal fraud stemming from his issuing false financial statements.

However, the convictions were thrown out in 1999, after a court found that a juror had been wrongfully dismissed from the jury. Prosecutors had not made a final decision on a retrial when the ex-governor received a pardon from President Clinton.

– Camilla Klein editors@plansponsor.com