Trustee: Hedge Fund Manager Conned La. Retirement Systems
BATON ROUGE, La. (AP) — A court-appointed bankruptcy trustee's report alleges that a New York hedge fund manager conned three Louisiana retirement systems out of $100 million.
In 2008, trustees of the New Orleans Firefighters' Pension and Relief Fund, the state Firefighters' Retirement System and the Municipal Employees' Retirement System invested the money in the flagship fund of Fletcher Asset Management. The report says the fund offered a guaranteed 12 percent rate of return.
The Advocate reports that bankruptcy trustee Richard Davis alleges the hedge fund's manager, Alphonse "Buddy" Fletcher Jr., "perpetuated a fraud."
Fletcher denies the allegations. In an affidavit filed this week in the New York bankruptcy proceeding, Fletcher said pension officials should have known they were getting into high-risk investments where loss of the entire invested amount was possible.
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