SEC accuses former general counsel of investment firm of covering up pension theft
Posted Jun 12, 2013 9:22 AM CDT
By Debra Cassens Weiss
The Securities and Exchange Commission has accused the former general counsel of a Detroit investment firm of trying to cover up the theft of pension fund money.
Alicia Diaz, the former general counsel of MayfieldGentry Realty Advisors, is accused with three other executives of trying to hide the theft of a $3.1 million by the fund’s founder, Chauncey Mayfield, report Corporate Counsel and a press release. Mayfield used the money to buy California shopping malls, the SEC says in its complaint (PDF).
“Rather than come clean about the theft and risk losing the sizeable business the firm received from the pension fund,” the press release alleges, “MayfieldGentry officials instead devised a plan to secretly repay the pension fund by cutting costs at the firm and selling the strip malls. Their plan ultimately failed.” The executives are accused of aiding and abetting securities law violations.
Mayfield agreed to repay the money and settle the case without admitting or denying the charges. The case against Diaz and the other executives is pending.