The U.S. Department of Labor has obtained a $50 million judgment against Chicago investment advisor John Orecchio for using money from six union pensions for his own private business interests.
According to the Securities and Exchange Commission, Orecchio used pension assets to pay for private jet travel, Super Bowl tickets, construction at his Michigan horse farm and renovations to a Detroit strip club he owns.
Under the judgment, Orecchio is barred from administering any governed by the federal Employee Retirement Income Security Act (ERISA).
Orecchio has filed papers indicating he doesn’t have the $50 million handy right now, so the court ordered him to file annual financial statements and pay off the debt as he has funds to do so.
Orecchio and his Chicago firm, AA Capital Partners, allegedly misappropriated $25.9 million from the pension plans meant to provide retirement income to some 60,000 blue-collar workers in Michigan.
- Noncompete pacts in Texas: New ruling brings clarity … and questions
- Changes in benefits? Make sure employees on military leave get written notice, too
- 2 ways to make you and the boss look good
- You can't push contract-Breach case to federal court
- The changing face of the ADA: Complying with the new amendments