DOL Suit Against Investment Advisers Highlights Risk to Pension Funds

This lawsuit is good news. It highlights the risks that pension funds and other institutional investors take in relying upon ‘industry standard’ due diligence rather than specialized fraud prevention due diligence.

The U.S. Department of Labor (DOL) has filed suit against four registered investment advisers (RIAs) to pension funds for violation of the Employee Retirement Income Security Act (ERISA) which sets standards for those entrusted with your retirement contributions.  According to the DOL, Beacon Associates Management, Andover Associates Management, Ivy Asset Management, and J.P. Jeanneret Associates violated ERISA when they recommended that their pension fund clients invest in Bernie Madoff’s fraudulent funds. (more…)

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