Embattled Pa. teacher pension fund subpoenaed by SEC over ‘compensation and gifts’ to staff – By Angela Couloumbis (Spotlight PA) and Craig R. McCoy and Joseph N. DiStefano (The Philadelphia Inquirer) / Sept 25 2021
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The U.S. Securities and Exchange Commission has joined the FBI in the investigation of Pennsylvania’s biggest pension fund, subpoenaing records about its board’s adoption of a false figure for its financial performance — and about improper “compensation and gifts” possibly offered staff.
State employees are forbidden from accepting such gifts under a ban imposed by Gov. Tom Wolf. The subpoena issued to the PSERS school pension plan Friday was the first indication that investigators are looking into possible presents or money from investment advisers and consultants.
The FBI and federal prosecutors launched a criminal probe of the $70 billion PSERS plan in March immediately after the fund’s board issued a brief statement revealing its belated doubts about the figure it endorsed in December for financial results.
