Mass. Pension Sues Fletcher

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.

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