LABORERS (LIUNA)
SEC Wins Injunction Against Oregon Union Fund Mangers
The Securities & Exch. Comm'n has obtained a permanent injunction
against former Capital Consultants executives Jeffrey
and Barclay Grayson, the first step toward barring Jeffrey Grayson
for life from the money management business. Jeffrey Grayson is ex-CEO
of Capital Consultants, the Portland, Or., money management firm that has
reportedly lost more than $200 million of client money. Most of the losses
came from union pension plans, including the Laborers' Int'l Union of N.
Am. The Dep't of Labor continues an effort to recover money from Capital
Consultants and the Graysons to defray the union trust funds' losses. SEC
is not seeking money damages against the Graysons, although SEC has reserved
the right to enforce a financial penalty against them.
In suits filed Sept. 2000, SEC and DOL claimed that the Graysons engineered a complex Ponzi-like scheme to disguise the fact that $160 million in loans to the former Wilshire Credit Corp. had actually failed. Dozens of union trust fund clients have sued the Graysons and others in connection with Capital Consultants' meltdown. Those suits are scheduled to go into confidential mediation where the various camps will attempt to reach a settlement May 29. [Oregonian 5/10/01]
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