Ex-Detroit mayor Kwame Kilpatrick accused of accepting gifts from adviser

Ex-Detroit mayor Kwame Kilpatrick accused of accepting gifts from adviser
Former Detroit Mayor Kwame Kilpatrick and the city's ex-treasurer were sued by the U.S. Securities and Exchange Commission, which accused them of awarding pension-fund business in exchange for $125,000 worth of gifts from an investment adviser.
MAY 08, 2012
Former Detroit Mayor Kwame Kilpatrick and the city’s ex-treasurer were sued by the U.S. Securities and Exchange Commission, which accused them of awarding pension-fund business in exchange for $125,000 worth of gifts from an investment adviser. Kilpatrick and former Treasurer Jeffrey Beasley, who were trustees of Detroit’s public employee pension funds, solicited private jet trips, hotel rooms and other gifts from an investment adviser seeking a $117 million investment in a real estate trust run by the firm, according to the lawsuit, filed in U.S. District Court in Detroit. The SEC has been moving to crack down on misconduct in the state and local government pension fund and bond business. The regulators created a division to handle municipal cases, and in 2010 it settled with New Jersey for allegedly hiding from investors the size of its pension-fund shortfalls. “It is a disappointing day when pension fund trustees such as ex-Mayor Kilpatrick and others corrupt the investment process by selling out hardworking police officers, firefighters and other municipal employees for the price of a few vacations and paltry extras like concert tickets and rounds of golf,” Robert Khuzami, the director of the SEC’s Division of Enforcement, said in a statement. The SEC’s lawsuit also named as a defendant Chauncey Mayfield, the chief executive of the investment firm that won the city’s business. James Thomas, an attorney for Kilpatrick, didn’t immediately return a phone call. Walter Piszczatowski, a lawyer for Beasley, also didn’t immediately respond to a message. Eric Yaffe, who represents Mayfield, declined to comment. --Bloomberg News--

Latest News

The fight over the CFPB is just beginning
The fight over the CFPB is just beginning

Locked out of their offices and told to stay home, employees at the Consumer Financial Protection Bureau have asked the courts to intervene as Elon Musk and Republican leaders move to shut down the agency that was established to protect people from predatory lending and financial scams.

Business-focused wealth tech RISR lands $8B Wealthcare Capital Management partnership
Business-focused wealth tech RISR lands $8B Wealthcare Capital Management partnership

Fintech platform interVal has also introduced a new feature to help advisors support entrepreneurial business owner clients better.

LPL boosts revenue potential with amped-up alts platform
LPL boosts revenue potential with amped-up alts platform

Along with greater revenue, alternative investments also carry risks, one industry lawyer noted.

How SageSpring Wealth Partners' next-gen strategy has fueled its success
How SageSpring Wealth Partners' next-gen strategy has fueled its success

President Jeff Dobyns unpacks the strategic power of mentorship, what makes an "ideal team player," and how the firm's 89 percent success rate has paid off for veteran advisors.

Powell heads for hot-seat hearings with ongoing pressure from Trump policies
Powell heads for hot-seat hearings with ongoing pressure from Trump policies

The Fed chair is in for some "hyper-charged" meetings, with legislators likely to raise questions on tariff threats and apparent steps to comply with anti-DEI orders.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.