The city of Atlanta’s largest pension board on Thursday called for an audit of $10 million it has sunk into a fund created and managed by its investment adviser, amid an ongoing federal investigation involving that fund.
The story you’re reading is premium content from The Atlanta Journal-Constitution. Subscribers get total access to all our in-depth news, digital editions and exclusive premium content. You can now also buy a 24-hour digital pass or 7-day digital pass.
Read MyAJC.com now — 24-hour digital pass99¢ for 24-hours
Read MyAJC.com all week — 7-day digital pass$3.99 for 7-days
Subscribe to AJC for as little as 33¢ per dayView Offers
AJC Print subscriber — I need to register my account for digital access.Access Digital
AJC Print subscriber — I’ve already registered my account.Sign In
The Atlanta Journal-Constitution in July first reported concerns about Atlanta investment adviser Larry Gray, whose firm recommends investments for public pension plans responsible for investing billions of dollars. Some board members complained that Gray hadn’t made clear his firm’s financial interest when he recommended investment in a fund his firm had just created.
Then in September, the AJC revealed that Gray has been paying off $425,000 in federal tax liens and a $1 million settlement of a lawsuit accusing him of fraud while pitching his firm’s fund and locking in lucrative revenue. That information was not included in disclosures that Gray filed with government regulators, although investment advisers in most circumstances must report unpaid liens and certain legal settlements.
That coverage prompted the pension board for the city of Atlanta’s largest fund on Thursday to call for an audit of the Gray & Co. investment, to adopt new rules preventing for advisers from recommending their own funds, and asking Gray to explain his lack of disclosure at a meeting next week. The AJC also confirmed that federal regulators have issued subpoenas for records related to the Gray & Co. fund.