Boston Globe – The MBTA Retirement Fund waited more than a year to disclose problems at a hedge fund firm where it had invested $10 million. The firm is now shutting down, its chief executive banned from the securities industry.
In its annual report, released Dec. 10, the $1.6 billion pension fund for transit workers said that it removed its money from Weston Capital Asset Management in September 2013. Nine months later, Weston Capital unraveled as federal securities regulators filed civil fraud charges against the firm and its top executives for allegedly draining $17 million from one of its hedge funds to other accounts and to themselves.
