Home Virginia Politics Malek’s Firm Found Liable in $75 Million Fraud With Connecticut State Pension...

Malek’s Firm Found Liable in $75 Million Fraud With Connecticut State Pension Funds

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Prior to naming Fred Malek the chair of his new “Commission on Government Reform,” did Bob McDonnell look into the guy’s background at all?  So far, we have Malek’s work as Richard Nixon’s “Jew counter.” Needless to say, that alone should have disqualified Malek from being on this commission, let alone heading it. As if that’s not bad enough, there’s also the barbecued dog incident (sadly, this is not a joke).  But wait, there’s even more.

SEC administrative action

On August 12, 2003, the SEC filed a civil fraud lawsuit[18] against former Connecticut state Senate Majority Leader William DiBella for participating in a fraudulent scheme to invest $75 million of the state pension funds with Malek’s firm, Thayer Capital Partners.[18] [19] On May 18, 2007, DiBella and North Cove were found liable for aiding and abetting Silvester’s intentional violations of the Securities Exchange Act of 1934, and Thayer was found in negligence of Investment Advisers Act of 1940. Thayer paid a civil penalty of $150,000, and Malek personally paid a fine of $100,000.[20]

That’s right, the guy Bob McDonnell picked to chair his new government “reform” commission, on top of his Jew counting and dog barbecuing, was forced to pay a $100,000 fine for participating, along with his firm Thayer Capital Partners, in a $75 million fraud against the Connecticut state pension fund (click here for SEC Litigation Release No. 20498).  And this is the guy Bob McDonnell wanted to figure out the best ways to “reform” Virginia government?  A guy who participated in defrauding the pension fund of another state? Great judgment there, Bob!

  • libra

    from Bobby McD’s point of view, the guy has all the necessary qualifications to fill that particular position.

    1) Jew counting: everyone knows that Jews and money go together way, way back. Jews are, therefore, the first ones to be applied to for money (also way, way back. In the old days, the kings et al didn’t even have to pay back the “loans”; a little pogrom took care of any claims). He already knows how to count his Jews; definitely a plus.

    2) Dog barbecue: everyone knows that reform, of any kind, requires ruthlessness. A strong stomach is a necessity; a warm (bleeding) heart might give in to whining. He’s proven he’s got what it takes.

    3) Fraud: when in Rome… Republicans tend to be drawn to fraud more than Dems but not all Repubs are “bent”. He’s already been tested on that front and proven himself to be worthy of the company he wants to keep. And earned bonus points for defrauding seniors.

    What’s not to like?  

  • Shenandoah Democrat

    In all seriousness, the anti-semitic allegations about Malek, his canine barbecue, his fraud conviction, and his connection to Palin are not as objectionable to me as the fact that Malek is historically known as the guy Nixon appointed to develop what became called the infamous “Malek Plan”, Nixon’s effort to politicize the federal bureacracy down to the GS-14 level. (The BLS anti-semitic epsiode is only one piece of Tricky Dick’s effort to totally politicize federal agencies.)

    Gov. McDonnell can be confident in his appointment. Whatever can be done to politicize Virginia’s government agencies and processes will be done by this loyal anti-democratic rightwing thug.

    Bob McDonnell is on his way to re-making the Old Dominion as the bastion of right wing politics.

  • WestEndVoter

    See Colbert I. King at

    http://www.washingtonpost.com/

    This guy should be nowhere near this commission.  

    Lowell, just a nit — Malek and his firm were not found liable, it was a consent judgment.  Based on King’s article, it looks they got off pretty easy.  

  • Once again, McDonnell makes a choice that just seems tone deaf.  I realize that most people are never even going to know about this, let alone care, but I have to think that even some Republicans are sitting there thinking there are better people to appoint and who were passed over for this scoundrel.

    • but you’re right, they got off very easy.