Post by pavel on Apr 6, 2016 1:07:50 GMT -6
Dallas police-fire pension sues advisor for millions over “reckless and improper” advice
The troubled police and fire pension fund is trying to recover millions of dollars from an advisory firm that the fund says led it into risky deals while scoring improperly high fees and other perks.
A legal claim filed late Tuesday by the Dallas Police and Fire Pension System pension fund alleges “multiple breaches of fiduciary duties” by CDK Realty Advisors, which at one time managed more than $700 million for the fund. For many years, the small firm had its offices in the fund’s headquarters building.
“High-risk investments have resulted in write-downs and losses of more than $320 million — losses on assets managed by CDK that represent funds that should have been safeguarded for the benefit of Dallas’s loyal and hardworking police officers and firefighters,” the pension fund’s court filing says.
A laywer for CDK said in a statement that the firm believes the fund’s allegations “are are totally without merit and untrue. We intend to dispute them vigorously in court.”
Read more: thescoopblog.dallasnews.com/2016/04/dallas-police-fire-pension-sues-advisor-for-millions-of-dollars-over-reckless-and-improper-advice.html/
The troubled police and fire pension fund is trying to recover millions of dollars from an advisory firm that the fund says led it into risky deals while scoring improperly high fees and other perks.
A legal claim filed late Tuesday by the Dallas Police and Fire Pension System pension fund alleges “multiple breaches of fiduciary duties” by CDK Realty Advisors, which at one time managed more than $700 million for the fund. For many years, the small firm had its offices in the fund’s headquarters building.
“High-risk investments have resulted in write-downs and losses of more than $320 million — losses on assets managed by CDK that represent funds that should have been safeguarded for the benefit of Dallas’s loyal and hardworking police officers and firefighters,” the pension fund’s court filing says.
A laywer for CDK said in a statement that the firm believes the fund’s allegations “are are totally without merit and untrue. We intend to dispute them vigorously in court.”
Read more: thescoopblog.dallasnews.com/2016/04/dallas-police-fire-pension-sues-advisor-for-millions-of-dollars-over-reckless-and-improper-advice.html/