U.S. Attorney Investigates D.C. Retirement Board

WASHINGTON -- Federal prosecutors are investigating Washington, D.C.’s pension board that oversees a $10 billion retirement fund for retired teachers, police officers and firefighters.

The D.C. Retirement Board recently was compelled by subpoenas to turn over records of its financial transactions to the U.S. Attorney’s Office.

The subpoena most specifically sought records of payments to the fund’s investment managers and investment consultants.

Public records show the retirement board appears to report only part of the management fees it pays to invest the fund’s assets.

Council members became suspicious after finding the Board failed to report payments to its outgoing director. They also questioned the Board’s decision last year to raise salaries for the director and its own 12 members.

The federal government contributes to the pension fund, which has helped the District maintain good ratings for its credit and municipal bonds.

The U.S. attorney’s investigation was revealed publicly in a whistleblower lawsuit filed in December against the Retirement Board by its own general counsel. The Board is represented by the law firm of Jones Day.

Erie Sampson says she was placed on administrative leave as general counsel after revealing the Board’s questionable accounting and disclosure practices to the D.C. Council and the city’s chief financial officer. She says the Board’s executive director also faulted her for trying to comply with the subpoenas.

One allegation in her lawsuit says the Board spent $93 million for investment management in 2018 but reported only $15 million of the fees in its annual report.

For more information, contact The Legal Forum (www.legal-forum.net) at email: tramstack@gmail.com or phone: 202-479-7240.