The new suit from Republican Attorney General Daniel Cameron’s office also specifically targets Stephen Schwarzman — a Republican billionaire who is one of the largest financial supporters of Mitch McConnell and Donald Trump’s political machine. Schwarzman has donated $10 million to the Senate Leadership Fund, a super PAC affiliated with McConnell, and $3 million to America First Action, a super PAC backing Trump, this election cycle.
The suit alleges that the firms misled the state into funneling retirees’ money into investments that were “secretive, opaque, illiquid, impossible to properly monitor or accurately value, high-fee, high-risk gambles with no historical record of performance.” The suit asserts that these were “absolutely unsuitable investments for a pension fund in the particular situation [Kentucky] was in, and violated the applicable laws, codes and standards.”
If the case moves forward, it could tear open the veil of secrecy surrounding the private equity and hedge fund industries, which control hundreds of billions of dollars of retirement funds across the world.
Source: A Huge Wall Street Scandal Just Exploded In Kentucky
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