Kentucky’s state pension agency has been ordered by a judge to release a suppressed report about possible fraud in its controversial hedge fund investments, according to a report by the Hearald-Leader. The judge ruled that taxpayers have right to have access to the contents of a report that cost $1.2 million.
New York law firm Calcaterra Pollack was hired by Kentucky Public Pensions Authority (KPPA) in 2020 to investigate “any improper or illegal activities” in hedge fund deals reportedly worth billions of dollars that have subsequently led to lawsuits alleging fraud.
The suits, which were filed by public employees and, later, the attorney general’s office, allege that between 2011 and 2017, several hedge fund dealers, aided by some KPPA trustees and employees, defrauded the pension scheme on $1.5 billion in “poorly disclosed, high-fee investments”.
The dealers deny the claims, while the KPPA itself has not joined the fraud suits as an active party and has so far refused to make the report public, despite and initial undertaking to do so.
