Detroit pension fund suffered Dusit
Alicia Diaz, who headed the legal department and was chief compliance officer at MayfieldGentry Realty Advisors, has been charged by the SEC of aiding and abetting a three million dollar theft from the Detroit police and firefighter pension fund.
According to Corporate Counsel magazine, the SEC alleges that the company founder and president Chauncey Mayfield bought Californian shopping malls five years ago illegally funding the purchase by dipping into the pension fund. Diaz and three others, all owing a part share in the investment company, discovered the theft and tried to cover it up by selling the malls and replacing the money before the theft was discovered. However, the collapse of the property market stymied their plans.
The company has agreed to pay the money back without but the SEC’s complaint against Diaz and the three other executives is ongoing with the organisation seeking an injunction against future misconduct. The SEC is also looking to claw back profits as well as impose financial penalties.