Saturday, 25 April 2015
Last updated 15 hours ago
Apr 20 2012 | 2:21am ET
A trio of Louisiana public pension funds is set to get its money back from Fletcher Asset Management—along with all of the fund's other investors.
A Cayman Islands judge on Wednesday approved the pensions' winding-up petition, ordering the FIA Leveraged Fund liquidated and appointing two Ernst & Young employees as its liquidators. The pensions in January moved to have the fund liquidated after almost a year of negotiations with New York-based Fletcher that followed a July redemption request that was filled by promissory notes.
The judge agreed with the pensions' position that FIA Leveraged was insolvent. The winding-up petition also accused Fletcher of failing to file audited financial statements for three years and having no directors between Nov. 21, 2011, and Jan. 24.
Fletcher said it would consider its options in the wake of the decision.
"We are disappointed in the Grand Court's ruling, which we believe is incorrect," Fletcher said. "The FIA Leveraged Fund is evaluating all of its options at this time, including an appeal. We remain committed to managing all of our funds in the best interests of our investors."
The battle with the three pensions—the Louisiana Firefighters' Retirement System, Louisiana Municipal Employees' Retirement System and the New Orleans Firefighters' Pension and Relief Fund—led to a regulatory investigation of Fletcher. The funds say they invested $100 million with Fletcher four years ago after receiving promises of a guaranteed 12% return—backed by other investors' assets. Fletcher has said that there was no ironclad guarantee.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…