No Criminal Charges in Millard PBGC Probe

June 3, 2010 ( – An investigation by the Inspector General of the Pension Benefit Guaranty Corporation (PBGC) into illegal procurement practices by a former director has concluded with a decision not to file criminal charges in the matter.

A Global Pensions news story said word of the probe’s outcome into Charles Millard was contained in a letter from Inspector General Rebecca Batts to U.S. Senator Charles Grassley (R-Iowa). Grassley and a group of Senate Finance Committee members had requested the probe.

According to the letter, Batts’ probe looked into the selection of investment managers to carry out the private-sector pension insurer’s investment policy but found no reason to pursue criminal charges.

Initial allegations claimed Millard ignored the blackout period during the bidding process to hire new managers and had improper contact with BlackRock, Goldman Sachs and JPMorgan via e-mail and phone correspondence (see Former PBGC Head Draws Scrutiny). Last year, the agency canceled a combined $2.5-billion private equity and real estate mandates awarded to the three managers, but insisted the move was unrelated to allegations against Millard (see Acting PBGC Head Recommends Dumping Money Mgmt. Contracts).

In a Senate floor speech in support of his proposal to strengthen the independence of federal inspectors general, Grassley praised Batts for her handling of the Millard matter. “Despite the potential risks of being replaced, these IGs have not been timid about challenging their agencies to improve,” Grassley declared in his remarks.

inancial Recovery Technologies (FRT), which helps institutional investors recover more from class-action settlements, has named Millard to its advisory board (see Former PBGC Director to Work on Class-Action Recovery Strategies).