TEAMSTERS (IBT) / MACHINISTS (IAM)
Union Fund Manager Charged
Federal prosecutors in Boston and Chicago announced today that George
Philipps, president of a N.Y. investment consulting firm, Pension Fund
Evaluations, Inc., was charged Dec. 18 in a one count information with
paying illegal kickbacks to William Close, ex- trustee of the pension funds
of Int'l Bhd. of Teamsters Local 710 and
Int'l Ass'n of Machinists Local 701 (a.k.a., the Auto. Mechanics Union),
both of Chicago. Allegedly, from about Mar.-Nov. 1997, Philipps paid kickbacks
to Close in exchange for Close directing that trades of assets of the two
pension funds be executed through PFE's clearing brokers. PFE in turn had
agreements with the brokers that PFE would receive 70% of commissions earned
on the trades. Close previously pled guilty to racketeering charges arising
out of his receipt of illegal kickbacks, and is awaiting sentencing. [USAO
D. Mass. 12/18/01]
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