In New York, a probe conducted by then-Attorney General Andrew Cuomo into corruption involving the selection of investment managers led to the guilty plea of six people, including David Loglisci, the former chief investment officer of the state’s pension fund.
In Chicago, two people pleaded guilty to taking part in a scheme to demand consulting fees from investment firms wanting to do business with the pension fund. They said in their plea agreements that the payments were used to reward campaign donors for the benefit of a high-ranking public official. The official was not named, but individuals familiar with the plea agreements, who spoke only on condition of anonymity, said it was former Governor Blagojevich.
In Ohio, after hearing rumors of corruption by state retirement fund leaders, Chillicothe School District Superintendent Dennis Leone found out that expensive business trips, parties and large bonuses were all paid for using the ever-diminishing assets earmarked for teacher retirement while his district was forced to cut its budget, close three schools and lay off 45 staff members. Leone pushed the Ohio legislature “to put in extra safeguards to prevent this level of malfeasance from happening again.” Legislation was introduced “to provide internal auditing of the pension fund’s spending practice.”
These are happening in the states but here they are being addressed. I mention these problems because I care about my relatives and friends in the CNMI who are in danger of losing their retirement benefits, especially the elderly who need their pension checks to buy their medications, food and other necessities. What’s happening to the Retirement Fund is a crime against retirees.
JOAQUIN O. ROMOLOR
Portland, Oregon
