A fact check by The Indianapolis Star – the paper Evan Bayh blatantly lied to about his votes-for-hire scandal, confirms that the corporate superlobbyist’s private equity firm defrauded Hoosier retirees.
As a result, Bayh’s Apollo Global Management was punished by the S.E.C. to the historic tune of nearly $53 million. Or, in other words, Bayh’s salary after a few years.
Indianapolis residents never see Evan Bayh around the neighborhood but Hoosier pensioners – including retired teachers, police officers, and firefighters, are all too familiar with his hedge fund.
In case you missed it, watch the Todd Young spot on Bayh’s fraud here and read more from The Indianapolis Star below:
Truth Squad: Did Evan Bayh’s firm mislead Hoosier retirees?
The Indianapolis Star
By Tony Cook
October 13, 2016
The ad
A new ad from the campaign of U.S. Rep. Todd Young targets his Democratic opponent, Evan Bayh, for his connections to private equity firm Apollo Global Management.
“Hoosier teachers, police and firefighters trusted Bayh’s firm. But while he made millions, his firm misled retirees and received the largest fine in SEC history,” an announcer says as words flash across the screen: “Bayh’s hedge fund fined over $53 million by Securities & Exchange Commission.”
A retired teacher then says, “Our senators should be protecting us from people who commit fraud, not going to work for them.”
The ad plays on a theme the Young campaign has been pushing for most of the campaign — that Bayh, the former senator and governor, has left Hoosiers in favor of a Washington D.C. lobbying firm and a Wall Street hedge fund.
Analysis
The ad says Bayh’s firm misled Indiana retirees and suggests Bayh wasn’t looking out for Hoosiers.
On the first point, Bayh did go to work for Apollo Global Management, one of the world’s largest private equity firms, within weeks of leaving the Senate in January 2011. He earned more than $2 million in that role since January 2015.
Apollo agreed last month to pay nearly $53 million to settle U.S. Securities and Exchange Commission complaints that the firm failed to disclose fees and misled clients about loan interest. The SEC also said Apollo failed to properly supervise a senior partner who used client funds for personal expenses.
…
Officials with the Indiana Public Retirement System confirmed it is among the clients owed money under the settlement. INPRS has committed $14.8 million to three Apollo funds, including $12 million to two funds that are part of the SEC settlement.
“INPRS has been informed that it will receive compensation as a result of its investments in Funds VI and VII as a part of the SEC settlement,” said Natalie Derrickson, a spokeswoman for INPRS. “The calculation of the exact amount to be paid to INPRS is still being finalized.”
…
Conclusion
Bayh works for Apollo and the SEC did accuse the company of fraud, leading to a settlement but no admission of guilt. Indiana’s retirement system was an alleged victim.
…