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!