Tag: FBI

An Update on America’s Homicide Surge

Mary Pat Campbell

Link: https://www.city-journal.org/update-on-americas-homicide-surge

Graphic:

Excerpt:

Last year, Christos Makridis and I used homicide data from the Centers for Disease Control to break down the 2020 homicide spike by geography and demographics. With another year’s worth of numbers now finalized—plus “provisional” numbers stretching into 2022—it’s time for a brief update. The CDC’s data, compiled from death certificates, are especially crucial in a year when the FBI completely failed to collect murder data from many of the nation’s police departments.

The good news is that, after spiking in 2020 and rising a little further in 2021, homicides seem to be falling again. The bad news is that this has been an extremely slow process, with recent numbers still well above pre-2020 levels, even if violence remains far from the sky-high levels of the early 1990s.

The CDC puts the national homicide rate at 7.8 per 100,000 for 2021, versus 7.5 for 2020 and 5.8 for 2019. Here are the month-by-month totals since 2018, including provisional data for the first half of 2022:

Author(s): Robert VerBruggen

Publication Date: 25 Jan 2023

Publication Site: City Journal

Justice Department Ends Investigation of Pennsylvania PSERS

Mary Pat Campbell

Link: https://www.ai-cio.com/news/justice-department-ends-investigation-of-pennsylvania-psers/

Excerpt:

The Department of Justice has dropped its investigation into the Pennsylvania Public School Employees’ Retirement System, said Chris Santa Maria, chairman of the $75.9 billion pension fund’s board of trustees, in a statement. PSERS made no further comment on the matter.

The pension fund had been under investigation by the Justice Department since at least May of last year, when subpoenas indicated that the FBI and prosecutors were seeking evidence of kickbacks and bribes at PSERS.

The subpoenas were reportedly looking for information from the pension fund, its executive director, chief financial officer, chief auditing officer and deputy CIO. The court orders reportedly showed that the FBI and prosecutors were probing possible “honest services fraud” and wire fraud.

….

According to a report released earlier this year following an internal investigation, PSERS investment consultant Aon took responsibility for the accounting error. The report includes a letter from Aon to Grossman that said the firm had become aware of data corruption in some sub-composite market values, cashflows and returns for April 2015.

Aon attributed the data corruption to an error by an analyst in uploading net asset value and cashflow data into the performance system it uses. The company said the data corruption impacted “a few asset class composites” in the public markets.

Author(s): Michael Katz

Publication Date: 3 Aug 2022

Publication Site: ai-CIO

FBI Said to Seek Evidence of Kickbacks, Bribery at Pennsylvania PSERS

Mary Pat Campbell

Link: https://www.ai-cio.com/news/fbi-said-to-seek-evidence-of-kickbacks-bribery-at-pennsylvania-psers/

Excerpt:

Subpoenas indicate that the FBI and federal prosecutors are seeking evidence of kickbacks and bribes in an investigation of the $62 billion Pennsylvania Public School Employees’ Retirement System (PSERS)’s misstatement of its 2020 investment performance and its real estate investment in Harrisburg, Pennsylvania, according to The Philadelphia Inquirer.

In December, PSERS’ board of trustees certified the contribution rates for its members. The board was told by its general investment consultant and another firm that the retirement system’s nine-year performance figure was 6.38%, which was just high enough to avoid triggering additional contributions under state law.

……

The court orders reportedly reveal that the FBI and prosecutors are investigating possible “honest services fraud” and wire fraud. Under a 2010 US Supreme Court ruling, federal prosecutors need proof of illegal payments to seek criminal charges against state officials for not providing honest services, the Inquirer reported.

No one at PSERS, including the executives who received subpoenas, has been accused of any wrongdoing.

And according to a report in The Wall Street Journal, PSERS’ board of trustees has spent more than $1 million and counting in its investigation of the reporting error.

Author(s): Michael Katz

Publication Date: 19 May 2021

Publication Site: ai-CIO

F.B.I. Asking Questions After a Pension Fund Aimed High and Fell Short

Mary Pat Campbell

Link: https://www.nytimes.com/2021/05/11/business/dealbook/psers-pennsylvania-fund-fbi.html

Excerpt:

The search for high returns takes many pension funds far and wide, but the Pennsylvania teachers’ fund went farther than most. It invested in trailer park chains, pistachio farms, pay phone systems for prison inmates — and, in a particularly bizarre twist, loans to Kurds trying to carve out their own homeland in northern Iraq.

Now the F.B.I. is on the case, investigating investment practices at the Pennsylvania Public School Employees’ Retirement System, and new questions are emerging about how the fund’s staff and consultants calculated returns.

…..

The error in calculating returns was a tiny one, just four one-hundredths of a percentage point. But it was enough — just barely — to push the fund’s performance over a critical threshold of 6.36 percent that, by law, determines whether certain teachers have to pay more into the fund. The close call raised questions about whether someone had manipulated the numbers and the error wasn’t really an error at all.

…..

“If you can’t change the benefits, and you can’t change the contributions, the only lever left for these people to pull is investment policy — that’s it,” said Kurt Winkelmann, a senior fellow for pension policy design at the University of Minnesota’s Heller-Hurwicz Economics Institute. “And that exposes younger beneficiaries and taxpayers to a lot of risk.”

Author(s): Mary Williams Walsh

Publication Date: 11 May 2021

Publication Site: New York Times

PSERS Signs Verus in ‘Emergency’ Hiring to Handle CIO Duties

Mary Pat Campbell

Link: https://www.fundfire.com/c/3145634/397343/psers_signs_verus_emergency_hiring_handle_duties

Excerpt:

The $64 billion Pennsylvania Public Schools’ Retirement System made the “emergency” hiring of an outside manager yesterday to take on the duties of chief investment officer James Grossman, the Philadelphia Inquirer reports.

Seattle-based Verus Investments will now handle “monitoring and oversight of investment” as the embattled pension system deals with “internal and external investigations,” including an FBI probe into its investing, PSERS says.

The fund’s investment of millions of dollars in real estate deals in Harrisburg is under federal investigation, while outside lawyers are looking into an “error” that inflated PSERS’ investment returns.

Author(s): Kathleen Laverty

Publication Date: 21 April 2021

Publication Site: FundFire

Pennsylvania pension system officials disclose federal probe

Mary Pat Campbell
Pennsylvania pension system officials disclose federal probe

Excerpt:

Officials atop Pennsylvania’s largest public pension system have received subpoenas from federal investigators, although the $64 billion Public School Employees’ Retirement System has yet to publicly discuss the nature or scope of the newly disclosed inquiry.

In addition to giving few details, pension system officials and board members — which includes state lawmakers, two members of Gov. Tom Wolf’s Cabinet and state Treasurer Stacy Garrity — have declined to answer questions publicly about what information federal investigators are seeking.

Garrity told lawmakers at a Senate Appropriations Committee hearing Tuesday that “federal subpoenas have been served on several PSERS management officials.”

Author(s): Marc Levy, Associated Press

Publication Date: 8 April 2021

Publication Site: WHYY PBS

FBI Investigating Reporting Fraud at $62 Billion Pennsylvania Public Pension Fund, PSERS; Returns Allegedly Falsified to Avoid Increased Worker Contributions

Mary Pat Campbell
FBI Investigating Reporting Fraud at $62 Billion Pennsylvania Public Pension Fund, PSERS; Returns Allegedly Falsified to Avoid Increased Worker Contributions

Excerpt:

PSERS is trying to depict the performance overstatement as an error but its body language says otherwise. It has launched an investigation of its three top staff members and has gone from denying that PSERS has any information that anything criminal had taken place to ducking the question.

The Inquirer described how three of PSERS’ 15 board members voted against a staff effort to say the return numbers were fine after some sort of not fully disclosed brouhaha with an outside consultant.

…..

The “impact on PSERS tax exempt status” is alarming, and it’s frustrating that the article does not probe what the issue might be.

Needless to say, expect more shoes to drop as the FBI keeps digging. A friend who was the DA for Bridgeport, the most corrupt city in Connecticut, said the FBI aren’t the brightest bulbs but are relentless and as a result generally take down their targets.

Author(s): Yves Smith

Publication Date: 6 April 2021

Publication Site: naked capitalism

Report: FBI Now Probing Cuomo’s Corporate Immunity Law

Mary Pat Campbell

Link: https://www.dailyposter.com/p/report-fbi-now-probing-cuomos-corporate

Excerpt:

The probe follows a Daily Poster investigative series detailing how one of Cuomo’s biggest donors, the Greater New York Hospital Association (GNYHA) — a lobby group that represents hospital systems and nursing home operators — said it “drafted and aggressively advocated for” the corporate immunity provision. Cuomo’s administration quietly inserted the measure into his state’s budget as thousands lay dying from COVID-19 in New York nursing homes. 

Critics say that the immunity law removed a key deterrent to corporate malfeasance, and victims and their families were subsequently stripped of their legal rights. Cuomo’s original executive order shielding front line health care workers from lawsuits was widely reported, but not the governor’s separate budget language extending immunity to hospital and nursing home corporations’ executives and board members. 

Author(s): David Sirota, Joel Warner, Andrew Perez, Julia Rock

Publication Date: 18 March 2021

Publication Site: Daily Poster

New York Gov. Andrew Cuomo under investigation for nursing home deaths

Mary Pat Campbell

Link: https://abcnews.go.com/Politics/york-gov-andrew-cuomo-investigation-nursing-home-deaths/story?id=75960261

Excerpt:

The full scope of the investigation is not immediately clear, but the sources said there was a particular interest in nursing homes, which have been a source of increasing frustration for Cuomo.

Last week, an aide conceded the administration withheld the nursing home death toll from state lawmakers out of fear it would be used against the state by the Trump administration.

….

The controversy over nursing home deaths has dogged Cuomo for months. At the onset of the pandemic, state health officials directed nursing homes to accept residents recovering from the virus as they were discharged from hospitals.

The directive was rescinded several weeks later, but Cuomo faced criticism that it contributed to a high level of deaths in nursing homes. The governor said he based the decision on federal guidance at the time and insisted staff members, not residents discharged from hospitals, brought coronavirus into nursing homes.

Author(s): Aaron Katersky

Publication Date: 17 February 2021

Publication Site: ABC News

FBI, U.S. attorney in Brooklyn probing Cuomo administration on nursing homes

Mary Pat Campbell

Link: https://www.timesunion.com/news/article/cuomo-investigation-fbi-covid-nursing-homes-15957401.php

Excerpt:

The FBI and the U.S. attorney’s office in Brooklyn have launched an investigation that is examining, at least in part, the actions of Gov. Andrew M. Cuomo’s coronavirus task force in its handling of nursing homes and other long-term care facilities during the pandemic, the Times Union has learned.

The probe by the U.S. attorney’s office in the Eastern District of New York is apparently in its early stages and is focusing on the work of some of the senior members of the governor’s task force, according to a person with direct knowledge of the matter who is not authorized to comment publicly.

Author(s): Brendan J. Lyons

Publication Date: 17 February 2021

Publication Site: Times-Union