(Warwick) – When she was Treasurer, Gina Raimondo took a billion-dollar gamble to further her political career with no regard to who she hurt. Due to the changes in the state pensions, seniors and state workers have seen over $500 million in losses. It is time Rhode Islanders have someone who will fight for them and not wall-street cronies.
“Raimondo basically took away grandma’s COLA and gave it to her friends on Wall Street. When cutting benefits to our seniors, she took that money and lined the pockets of her friends in New York via the exorbitant fees that go along with hedge funds,” said Mayor Fung.
The reform has been such a failure, Treasurer Magaziner is trying to reverse the course as most of the hedge funds ‘did not meet expectations’. More than half of any gains realized have been swallowed up by their own fees.
Upon taking office, Allan Fung will work at restoring COLAs on a more frequent basis in a responsible way.
Mayor Fung will reverse Raimondo’s secrecy and will work to make public the names of all hedge fund managers and their contacts that outline their fees and investment strategies.
Secondly, Mayor Fung will initiate an independent investigation by a forensic pension expert into the entire fund performance and fees. Especially in regard to those hedge fund investments by Raimondo and continued on be her. The results of the investigation will then by forwarded to the SEC for their review.
Mayor Fung is also calling for the Attorney General’s office to investigate any violations of civil or criminal laws that occurred as a result of this wealth transfer from the pockets of pensioners to Wall Street, in exchange for political contributions.
Finally, Mayor Fung has spoken with a local attorney and they continue to follow the Kentucky lawsuits by retirees against the financial advisors, retirement board, and the hedge funds themselves. If successful there, we are looking to initiate a potential litigation in Rhode Island to recover funds on behalf of the pensioners who have been defrauded by now Governor Raimondo and the current Treasurer.