1. Executive behavior – Fisher Investments
Fisher Investments head Ken Fisher's crude comments about women during an interview at a "fireside chat" during a conference were videoed and released by an attendee, causing a backlash against the CEO and his firm.
And it was costly: Retirement systems and investment firms redeeming money included Michigan's pension fund, Fidelity Investments, the Iowa Public Employees' Retirement System, Goldman Sachs, the Los Angeles fire and police pension, and others.
How costly? To date, redemptions total $3.1 billion out of the $114 billion of Fisher's AUM.
Will it lead to change in the industry? (Photo of Ken Fisher: Gilliane Tedder/Bloomberg)
5. College admissions bribery
Rich and/or famous parents conspired to get their children admitted to choice universities. At least two parents went to prison (briefly). So how does this scandal relate to the financial industry?
A tip. The SEC was investigating Morrie Tobin in a fraud scheme around stocks in two drug companies. Tobin attempted to bargain his way to a lenient sentence by offering a tip totally unrelated to his case.
That tip involved a now-former Yale soccer coach whom Tobin said was pressing for a bribe to get his child into Yale. The resulting information on that case led to 50 people being charged.
As for Tobin,he said he would plead guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. (Photo of Felicity Huffman, right, after her appearance in court in the college admissions bribery scandal: Jack Newsham/ALM)
4. Cyber theft from pension fund
As if public pensions didn't have enough challenges to deal with, add cybersecurity to the mix. The cyber theft of $4.2 million from Oklahoma's law enforcement officers pension might be a wake-up call for retirement systems across the U.S.
Apparently an employee's email account was hacked. Officials representing the $1 billion pension fund say some of the money has been recovered. Employees will be trained in cybersecurity best practices. (Photo of Oklahoma City: Shutterstock)
3. Excessive fees - MIT
It certainly wasn't a large settlement, financially, compared to others. But the $18.1 million MIT must pay is the largest, so far, involving a university retirement plan.
Yet the cost of the non-monetary provisions of the settlement may have greater significance for retirement plans and their recordkeepers, according to financial journalist Nick Thornton.
"One provision requires MIT's fiduciaries to put out a request for proposal to at least three recordkeepers that specifically requires bids on a per-participant basis, and prohibits bids that charge a percentage of plan assets," Thornton writes in "Schlichter: Sponsors 'on notice' about using asset-based recordkeeping fees."
Jerry Schlichter, the plaintiffs' attorney told him, "That provision has been a part of a group of settlements we've had recently. Taken together, it is a powerful indication that sponsors need to look very carefully at recordkeeping fees standing in isolation, particularly if those fees are being paid on an asset-based charge." (Photo of MIT building: John Phelan/Wikimedia Commons)
2. Fraud - Woodbridge
Unfortunately, fraud occurs so frequently, it is not news these days unless it involves an admired and/or vulnerable population of victims (nuns, NFL players, veterans) or results in large financial penalties. The latter reason is why Woodbridge Group is on this list.
A federal court ordered the company and its former owner to pay $1 billion in penalties and disgorgement for operating a Ponzi scheme that targeted retail investors.
Judge Marcia G. Cooke of the U.S. District Court for the Southern District of Florida approved judgments against Woodbridge and its 281 related companies.
Shapiro (pictured) was sentenced to 25 years in prison.
Advertisement
1. Executive behavior – Fisher Investments
Fisher Investments head Ken Fisher's crude comments about women during an interview at a "fireside chat" during a conference were videoed and released by an attendee, causing a backlash against the CEO and his firm.
And it was costly: Retirement systems and investment firms redeeming money included Michigan's pension fund, Fidelity Investments, the Iowa Public Employees' Retirement System, Goldman Sachs, the Los Angeles fire and police pension, and others.
How costly? To date, redemptions total $3.1 billion out of the $114 billion of Fisher's AUM.
Will it lead to change in the industry? (Photo of Ken Fisher: Gilliane Tedder/Bloomberg)
5. College admissions bribery
Rich and/or famous parents conspired to get their children admitted to choice universities. At least two parents went to prison (briefly). So how does this scandal relate to the financial industry?
A tip. The SEC was investigating Morrie Tobin in a fraud scheme around stocks in two drug companies. Tobin attempted to bargain his way to a lenient sentence by offering a tip totally unrelated to his case.
That tip involved a now-former Yale soccer coach whom Tobin said was pressing for a bribe to get his child into Yale. The resulting information on that case led to 50 people being charged.
As for Tobin,he said he would plead guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. (Photo of Felicity Huffman, right, after her appearance in court in the college admissions bribery scandal: Jack Newsham/ALM)
4. Cyber theft from pension fund
As if public pensions didn't have enough challenges to deal with, add cybersecurity to the mix. The cyber theft of $4.2 million from Oklahoma's law enforcement officers pension might be a wake-up call for retirement systems across the U.S.
Apparently an employee's email account was hacked. Officials representing the $1 billion pension fund say some of the money has been recovered. Employees will be trained in cybersecurity best practices. (Photo of Oklahoma City: Shutterstock)
3. Excessive fees - MIT
It certainly wasn't a large settlement, financially, compared to others. But the $18.1 million MIT must pay is the largest, so far, involving a university retirement plan.
Yet the cost of the non-monetary provisions of the settlement may have greater significance for retirement plans and their recordkeepers, according to financial journalist Nick Thornton.
"One provision requires MIT's fiduciaries to put out a request for proposal to at least three recordkeepers that specifically requires bids on a per-participant basis, and prohibits bids that charge a percentage of plan assets," Thornton writes in "Schlichter: Sponsors 'on notice' about using asset-based recordkeeping fees."
Jerry Schlichter, the plaintiffs' attorney told him, "That provision has been a part of a group of settlements we've had recently. Taken together, it is a powerful indication that sponsors need to look very carefully at recordkeeping fees standing in isolation, particularly if those fees are being paid on an asset-based charge." (Photo of MIT building: John Phelan/Wikimedia Commons)
2. Fraud - Woodbridge
Unfortunately, fraud occurs so frequently, it is not news these days unless it involves an admired and/or vulnerable population of victims (nuns, NFL players, veterans) or results in large financial penalties. The latter reason is why Woodbridge Group is on this list.
A federal court ordered the company and its former owner to pay $1 billion in penalties and disgorgement for operating a Ponzi scheme that targeted retail investors.
Judge Marcia G. Cooke of the U.S. District Court for the Southern District of Florida approved judgments against Woodbridge and its 281 related companies.
Shapiro (pictured) was sentenced to 25 years in prison.
Advertisement
1. Executive behavior – Fisher Investments
Fisher Investments head Ken Fisher's crude comments about women during an interview at a "fireside chat" during a conference were videoed and released by an attendee, causing a backlash against the CEO and his firm.
And it was costly: Retirement systems and investment firms redeeming money included Michigan's pension fund, Fidelity Investments, the Iowa Public Employees' Retirement System, Goldman Sachs, the Los Angeles fire and police pension, and others.
How costly? To date, redemptions total $3.1 billion out of the $114 billion of Fisher's AUM.
Will it lead to change in the industry? (Photo of Ken Fisher: Gilliane Tedder/Bloomberg)
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
