FBI probe of massive Pennsylvania pension fund seeks evidence of kickbacks or bribery

Federal prosecutors investigating Pennsylvania’s $64 billion public school pension fund are looking for evidence of kickbacks or bribery as they explore why the plan exaggerated investment returns and spent millions to amass real estate in Harrisburg.

Subpoenas reviewed by Spotlight PA and The Philadelphia Inquirer demand information from the fund itself, its executive director, and at least three other senior executives. The documents lay bare the scope of the probe and reveal that prosecutors and the FBI are investigating possible “honest services” fraud and wire fraud.

Under a key 2010 U.S. Supreme Court ruling, federal prosecutors would need proof of illegal payments to charge state officials with the crime of not providing honest service, criminal-law experts say. Wire fraud involves using a phone or email to commit crimes.

The subpoenas sought grand jury testimony from fund executive director Glen Grell, chief financial officer Brian Carl, deputy chief investment officer Thomas Bauer, and chief auditing officer Mei Gentry. No one, including those served with subpoenas, has been accused of wrongdoing.

Read more: https://www.spotlightpa.org/news/2021/05/pa-fbi-pension-psers-investigation-subpoenas-properties-real-estate-harrisburg/