Wiped-Out Pension Fund Sues Advisers Over Ponzi Losses

Law360, Los Angeles (July 19, 2013, 3:45 PM EDT) -- The pension fund of a Staten Island, N.Y.-based union of tugboat drivers and longshoremen filed a complaint in New York state court Thursday against its former financial adviser, lawyer and accountants, alleging the team didn't prevent it from falling prey to a Ponzi scheme.

The United Marine Division Local 333 Beneficial Fund Annuity Plan accused its third-party administrator, auditor and attorney of failing to protect it from Carlo Chiaese, an investment manager who swindled $1.7 million, the entire fund, in a Ponzi scheme that unraveled in...
To view the full article, register now.