The SEC has charged an investment advisory firmand two of its executives with selling unsuitable investments topension funds for Atlanta’s police and firefighters, transit workers and otheremployees.
According to the agency, Gray Financial Group of Atlanta,Laurence O. Gray, its founder and president, and Robert C. HubbardIV, co-CEO, were charged with fraud after allegedly breaching theirfiduciary duty by steering public pension clients into alternativeinvestments that did not meet the requirements of Georgia state laweven while they knew the investments were unsuitable.
After recommending investments in its fund called GrayCoAlternative Partners to the city of Atlanta’s Firefighters’ PensionFund, General Employees’ Pension Fund, and Police Officers’ PensionFund as well as the MARTA/ATU Local 732 Employees Retirement Plan,Gray Financial Group has collected more than $1.7 million in feesfrom the pension fund clients as a result of the improperinvestments.
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