Former Police, Fire Pension Managers Should Face Criminal Investigation

Mayor Mike Rawlings is right to ask for a state criminal investigation into shady practices by the Dallas Police and Fire Pension System's prior management. The fund is on the verge of a potentially catastrophic collapse that could leave public safety workers, taxpayers and the City of Dallas on the hook for billions of dollars. And the reason stems from abuses under the former administrator Richard Tettamant, who was ousted in 2014. (Stunningly, Tettamant is still working in investments in the DFW area, according to his LinkedIn page.) The fund's former managers bet heavily on risky investments such as luxury homes in Hawaii, a resort and vineyard in California and Dallas' Museum Tower itself, and promised its hardworking police and fire employees unrealistic returns while enjoying lavish perks. Those returns didn't materialize, saddling the retirement fund's new managers with $2 billion to $5 billion in unfunded liabilities. Frightened police officers and firefighters began a run on the fund, pulling more than $500 million out of it in recent weeks at a pace that would have drained the fund's cash to dangerous levels.  Continue reading...

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