Accountant Allegedly Stole $2 Million from New Orleans Firefighters’ Pension

Wayne Triche was charged with wire fraud and tax fraud in 38-count indictment.

A Louisiana accountant has been charged with stealing more than $2 million from the struggling New Orleans Firefighters Pension and Relief Fund (NOFPRF), which he allegedly used to gamble, finance home improvements, and pay off debts, according to the US Attorney’s Office Eastern District of Louisiana.  

Wayne Triche of Baton Rouge was charged with wire fraud and tax fraud in a 38-count indictment, said US Attorney Peter Trasser.

The indictment alleges that Triche, a certified public accountant who was responsible for investing a portion of the fund’s investments, embezzled the funds for his own personal use.  The tax fraud charges stem from Triche’s failure to claim the embezzled funds on his personal income tax returns, resulting in a significant loss to the Internal Revenue Service.

If convicted of the violations, the 75-year-old Triche faces a maximum term of imprisonment of 20 years, a fine of up to $250,000, a period of up to three years supervised release, and a mandatory special assessment of $3,800.

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“Wayne Triche devised and intended to devise a scheme to defraud the New Orleans Firefighters Pension and Relief Fund (NOFPRF), and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises,” according to the grand jury charges.

The indictment cited 34 unauthorized transactions totaling more than $1.8 million between 2013 and 2016.

NOFPRF provided $5 million to American Pension Consultants (APC), a company Triche co-founded in 2002, so that the firm could purchase life insurance policies on the fund’s behalf. A promissory note restricted the use of funds from NOFPRF to the purchase of life insurance settlements and administrative expenses up to $119,000, and a payment to APC of $250,000. No other compensation to Triche was allowed per the promissory note.

The charges allege that Triche siphoned funds belonging to the NOFPRF by transferring money held in bank accounts belonging to APC to accounts he personally controlled.  It claimed the money was used for “payment of a civil judgment, gambling, home improvements, credit card payments, and living expenses.”

The indictment said APC received more than $6 million in benefits from life insurance policies purchased as investments on behalf of the pension fund, but paid the fund less than half that amount.

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Another Swedish Pension Shield Had a Not-Great 2018

Two of the nation’s four retirement system reserves experienced lackluster returns last year.

One of Sweden’s pension fund reserves, AP3, had a barely profitable 2018 amid market volatility, returning a miniscule 0.6% for the year. That’s at least better than the loss logged at another of the funds, AP2.

The slim $235.8 million profit put AP3’s size at $37.9 billion. However, assets fell 1.3% $728.9 million thanks to payments made to the retirement system. The fund, one of four emergency savings vehicles for the nation’s pension system, returned 8.8% the year prior.

Equities were to blame for the barely positive returns, as stocks contributed a 9.8% loss. Fixed income also had hiccups, slipping 1.1%. The fund hedged these bets with inflation-linked assets and credit, which returned 14.8% and 0.7%, respectively.

“Our real estate investments and other unlisted assets, as well as currency positioning, were against [losses] and created the positive result,” said Kerstin Hessius, AP3’s chief executive officer.

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The news comes on the heels of its Gothenburg-based sister fund, AP2’s reported 1.3% loss in the same period.

Despite these issues, the AP3 fund has averaged an annual 7.8% for the past five years and 7.4% over the past 10. The fund has also beaten its long-term target of 4% per year since its 2001 inception.

Another silver lining for the fund was increases to its strategic sustainability investments, which stood at $3.05 billion on Dec. 31. The environmental, social, and governance (ESG) class has now doubled in size since it achieved its four sustainability goals implemented in 2014: halving its carbon footprint, tripling its green bond allocation, doubling the section’s size, and keeping Nordic property titan Vasakronan at the forefront of sustainable real estate.

“The result for the year shows the importance of a long-term sustainable portfolio with both listed and unlisted assets,” Hessius said, promoting optimism for the new investment laws that came into effect last month, as they provide the AP funds greater flexibility with their illiquid and alternative investment decisions. The chief added that these new rules “both promote the integration of sustainability and the diversification of the assets in the portfolio.”

AP3’s portfolio allocation was 37.6% equities (26.7% global, 10.9% domestic), 37.5% bonds, 13.4% real estate, 4.5% infrastructure, 3.8% venture capital, and 1.8% absolute return strategies. The last 4.2% was evenly split between forestry and insurance risk.

 

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Swedish Pension Fund Divesting from Nukes, Oil Sands Companies

 

 

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