Friday, 27 May 2016
Last updated 15 hours ago
Apr 1 2014 | 12:13pm ET
The pension fund for employees of the Boston area’s mass transit system has sued the manager of a bankrupt hedge fund it invested with.
The Massachusetts Bay Transportation Authority Retirement Fund alleges that Fletcher Asset Management and founder Alphonse Fletcher defrauded it of more than $50 million. The pension, which said it lost $25 million with Fletcher, accused the New York-based firm of inflating asset values and management fees, among other misdeeds.
With the lawsuit, the MBTARF joins three Louisiana pensions in seeking recompense from Fletcher in court. The court-appointed trustee overseeing one of the firm’s hedge funds has said that Fletcher resembles a Ponzi scheme.
The MBTA pension had already sued Fletcher’s auditors and its valuation firm.