Teacher, Police, and Firefighter Pensions Are Being Secretly Looted By Wall Street
Tuesday, July 05, 2022
America’s severely underfunded public pensions are allocating ever-greater assets to the highest cost, highest risk, most secretive investments ever devised by Wall Street, such private equity, hedge funds, real estate, and commodities—all in a desperate search for higher net returns that, not surprisingly (given the outlandish fees and risks), fail to materialize. Transparency—public scrutiny and accountability—have been abandoned, as pensions agree to Wall Street secrecy schemes that eviscerate public records laws.
Our nation’s state and federal securities laws are premised upon full disclosure of all material risks and fees to investors: “Read the prospectus before you invest,” is the oft-cited warning by securities regulators. Nevertheless, teachers, police, firefighters and other government workers today are not allowed to see how their retirement savings are managed or, more likely, mismanaged by Wall Street.
For nearly a decade, the United States Securities and Exchange Commission has warned investors that malfeasance and bogus fees are commonplace in so-called “alternative” investments and, more recently, Chairman Gary Gensler has called for greater transparency to increase competition and lower fees.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTGensler has asked the agency's staff to consider recommendations on ways to bring greater transparency to fee arrangements in private markets. "More competition and transparency could potentially bring greater efficiencies to this important part of the capital markets," he said. "This could help lower the cost of capital for businesses raising money. This could raise the returns for the pensions and endowments behind the limited partner investors. This ultimately could help workers preparing for retirement and families paying for their college educations."
Gensler has stated he would like to see a reduction in the fees these investments charge and has also commented on industry abuses such as ”side letters” which permit private funds to secretly give preferences to certain investors—preferences that harm public pensions.
But that’s not good enough to protect public pension stakeholders.
No one—including the pensions themselves—seems to care that the government workers whose retirement security is at risk are being kept in the dark.
The SEC needs to do more—actually alert public pensioners as to those abuses the Commission knows full well are rampant, at a minimum. Advise them, Chairman Gensler, to demand to see and read prospectuses and other offering documents related to their hard-earned savings.
Does the SEC think it’s kosher for Wall Street to withhold this information from investors—any investors?
Since my 2013 forensic investigation of the Rhode Island state pension exposing gross mismanagement by then-General Treasurer Gina Raimondo which I accurately predicted would cost workers dearly; my 2014 North Carolina state pension investigation exposing that $30 billion in assets had been moved into secretive, offshore accounts and, most recently, my investigation of the State Teachers Retirement System of Ohio, I have provided my expert findings to the SEC staff for their review. Each and every public pension forensic investigation I have undertaken has extensively discussed Wall Street secrecy schemes that enable looting. In my book, How To Steal A Lot Money—Legally, I quote disclosures from SEC filings that detail industry abuses.
Join me, Chairman Gensler, in giving government workers a clue, a glimpse, a peek, at the alternative investment abusive industry practices that are carefully guarded by Wall Street and being hidden from them.
Teachers, police and firefighters deserve a fighting chance to protect their retirement savings.
Edward Siedle has been called "the Sam Spade of Money Management," “the Financial Watchdog,” "the Pension Detective" and "the Equalizer" for his work pioneering over $1 trillion in forensic investigations of the money management industry.
The founder of Benchmark Financial Services, he is a former SEC attorney who, in 2017, he secured the largest SEC whistleblower award in history ($48 million) and in 2018, the largest CFTC award in history ($30 million). He is the co-author of the bestseller, Who Stole My Pension? (with Robert Kiyosaki, author of Rich Dad, Poor Dad) and the author of How To Steal a Lot of Money--Legally. He is an active member of the Florida Bar.
Related Articles
- Guest MINDSETTER™ Siedle: The Largest Crime in RI History
- Siedle Receives Record $30M Payment from Commodity Futures Trading Commission
- Trillo Says He Would Restore COLAs, Appoint Siedle Special Counsel if Elected RI Governor
- VIDEO LIVE: Top SEC Whistleblower Siedle Endorses Fung for Governor, Calls for Investigation
- Rhode Island State Pension May Never Be Able To Exit Gina Raimondo Loser: Guest MINDSETTER™ Siedle
- Guest MINDSETTER™ Siedle: Seeking Justice for RI Pension Stakeholders
- Dickinson Says Siedle Should Be Named Special Prosecutor to Investigate Raimondo & “Pension Reform”
- Siedle: NY AG Subpoenas TIAA, Kilmartin Once Again Hits Snooze Button
- Siedle in Talks to Buy Property in RI in Anticipation of AG Run
- Potential RI AG Candidate Siedle Scores Additional $30M in Whistleblowing Case - Total Now $78M
- EXCLUSIVE: Siedle Announces Political Plans for 2018
- NEW: Top SEC Whistleblower Siedle to Conduct Forensic Pension Investigation in Cranston
- Red Flags Abound At Bankrupt RI St. Joseph Health Services Church Pension: Guest MINDSETTER™ Siedle
- Providence Pension Could Bankrupt Rhode Island City - Ted Siedle
- Biden Picking Raimondo for Treasury Would Be Like Naming Dracula To Guard Blood Bank: Siedle
- How To Steal A Lot Of Money—Legally - Ted Siedle
- Your State Pension Is Not Fully Protected Under Law - Ted Siedle
- Siedle: Call Your State Securities Regulator and NASAA, Demand To See Public Pension Prospectuses
- Kiss Your State Pension Goodbye - Ted Siedle
- Coronavirus Side Effect: Feverish Pension Lying - Ted Siedle
- CNBC Features Raimondo Foe and Top Whistleblower Siedle in Special Segment
- Top SEC Whistleblower Siedle to Feature Rhode Island in Upcoming Book, “Who Stole My Pension?”
- “We Have a Subprime Pension Crisis About To Hit Us” - Siedle and Kiyosaki on Latest Book on LIVE
- PHOTOS: Ted Siedle Book Signing in Rhode Island
- Putin, Russian Pals “Mystery” Partners In Public Pension Deals? - Siedle