Thursday, June 17, 2010

Former Illinois Investment Advisor Sentenced In Michigan Union Pension Fraud Scam

John A. Orecchio, 44, formerly of Arlington Heights, Illinois, was sentenced today to 9 years and 4 months in federal prison for embezzling more than $24 million from several union pension funds in Michigan. Orecchio was also ordered to pay some $26.4 million in restitution, plus a $50 million civil judgement in favor of the U.S. Department of Labor. Prosecutors alleged that over a four year period, Orecchio, as a partner and co-founder of AA Capital Partners, defrauded six separate union pension funds, including those of the Michigan Regional Council of Carpenters and the Operating Engineers, Local 324 spending investment funds to support a lavish lifestyle that included luxury vehicles, thoroughbred racehorses, private jet junkets to Las Vegas and tropical islands, luxury sports events, real estate and an investment in a strip club. According to reports, approximately $100 million of the nearly $200 million in pension funds invested with Orecchio has been recovered, thus far.

Read the story here, here, here and here.

Read the criminal information here.

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