Skip to comments.Chicago pension fiasco: $54M lost on deal with Daley nephew, ex-Obama boss
Posted on 09/14/2018 8:32:22 AM PDT by george76
Vanecko and Davis. Their firm made millions in fees even as retirement plans for teachers, cops, other Chicago city workers suffered big losses.
A dozen years ago, five financially strapped city of Chicago pension funds invested $68 million in a shaky real estate deal put together by a former boss of resident Barack Obama and a nephew of Mayor Richard M. Daley.
It was a high-risk investment. Allison S. Davis who once headed a small Chicago law firm that gave Obama his first job out of Harvard Law School and Daley nephew Robert G. Vanecko even warned in the prospectus that the pension funds could lose their entire investments.
Eleven years ago, the Chicago Sun-Times exposed the deal, which quickly turned sour. The mayor publicly distanced himself from his nephew, whose pension deals created friction in the Daley family.
Vanecko pulled out of the partnership with Davis and his family in June 2009 12 days after a federal grand jury issued subpoenas for DV Urbans records.
not only did the pension funds not make a profit, records show they will end up losing a combined $54.2 million for the retirement plans, which cover Chicago teachers, police officers, municipal workers, garbage collectors and bus drivers.
On top of that, they spent $2.6 million on lawyers to fight DV Urban in court, litigation that finally came to an end last month when the retirement plans also agreed to pay $14,400 in copying fees that the company incurred during the court battles.
When the final accounting is finished by years end, each of the five city pension plans will have lost about 80 percent of the money they invested in the Davis-Vanecko deal, according to the Chicago Teachers Pension Fund, which lost the most.
(Excerpt) Read more at chicago.suntimes.com ...
Socialism IS crony-capitalism.
Where did the money go?......................
This ties in on how Obama is able to afford all those homes he bought.
Democrats have destroyed New York,California and some major American cities. Do not let them take you city and state. They are Evil!
It elected Obama and was suppose to elect Hillary!
I wonder how much money found its way to the Clinton Foundation AKA as a Slush Fund?....................
Chicago is simply doing what other Socialist Cities do.
Namely, investing pension money in their political friends projects.
Meanwhile, the Chicago residents get higher sales taxes and property taxes and business taxes imposed on them to pay for the corruption.
People who have the financial resources to leave Chicago are doing so which leaves more ‘gimme dat’ people in control at the voting booth.
Digital records, no doubt.
Maybe they could have invested with Corrine instead.
Auto correct! iPad
I meant they could have invested that money with John Corzine instead.
I agree. “Their firm made millions in fees even as retirement plans for teachers, cops, other Chicago city workers suffered big losses.”
I don’t understand why the Sun-Times is so exercised about this. It sounds like everything went just as planned, unlike much of Chicago’s efforts.
Chicago is a hotbed of socialism/communism in this country. I hope I can get out before Divine retribution strikes a-la Sodom and Gomorrah.
LOL - isn't this the standard clause employed by every scammer who's planning to run off with the money........
but I want law requiring them to reside and pay taxes in the place that pays their pension....
let them live in the dogpile they have created.
You can bet the largest sum of America’s 21 Trillion dollar debt is held by our enemies and the Democrat Party coffers have stolen it. I for one am willing to arm and face these criminals in the streets and their homes. The Democrat Party is above nothing and they are Evil and dead set on destroying America.
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