Leaders of several public pension systems in Pennsylvania continued to work with an investment adviser, his company, or a company for which he consults after he settled allegations of violating antifraud laws, a Spotlight PA investigation has found.
That includes three counties and at least two municipal systems that received payments from the adviser as result of the federal settlement.
The SEC case and the lack of transparency from local government agencies afterward highlights how these systems make crucial decisions about people’s finances and retirement funds, but often face little public scrutiny.
The U.S. Securities and Exchange Commission alleged William Vescio caused clients to invest in a class of mutual fund shares with higher fees, most of which he received, instead of a lower-cost option. For some clients, federal authorities alleged William Vescio negligently failed to disclose information and those “inaccurate disclosures gave the misleading impression that the overall fees were lower than they actually were.”
