Wall St. Exec at Firm Used By Oregon PERS Under Wheeler is Arrested for Fraud

Monday, March 28, 2016

GoLocalPDX News Team

Ted Wheeler, Oregon PERS used Caspersen's firm

Andrew Caspersen of the Wall Street firm Park Hill Group was arrested and charged with securities fraud. Caspersen created a scheme to defraud investors of $95 million through fake private equity investments according to the New York Enforcement office of the SEC.

Oregon PERS used Park Hill Group for the placement of $400 million according to the January of 2011 filings. “Annual Disclosure of Placement Agents January 28, 2011, Purpose In accordance with OST Policy 5.03.01, Conflict of Interest and Code of Conduct: Staff shall present to the OIC an annual summary of any Placement Agent used by any investment firms, recommended to the OIC for approval" discloses the Oregon PERS relationship.

Andrew Casperson, charged by Feds on Fraud Charges

According to court documents filed by the SEC today, “Since at least October 2015 and continuing until the present, Caspersen, a securities professional associated with a registered broker-dealer, has solicited approximately $95 million in investments from two investors~ offering promissory notes issued by defendant Irving Place III SPV and carrying a 15% annual interest rate. Irving Place III SPV~ however~ is nothing more than a shell entity formed and solely owned and controlled by Caspersen. It appears to have no legitimate business. By false and misleading statements, in November 2015, Caspersen obtained a $25 million investment, which was wired to Irving Place III SPV's bank account. Caspersen then simply took control of the funds for his personal use. Using false and misleading statements, Caspersen has since (so far unsuccessfully) solicited, and has continued to solicit, at least an additional $70 million."

Placement Agents Banned by Many States and Pension Systems

Many state pension systems around the country ban the use of placement agents. In January of 2015, “New York City Comptroller Scott Stringer said it was time to ban placement agents from doing business with the city’s $150 billion pension system. On Monday, he announced that the boards of the five pension plans concurred,” reported the business publication Crane’s.

The practice is considered at best unregulated and at worst the wild, wild west of Wall Street. Forbes contributor, Ted Siedle described the practice of private placements as:

Forget the old adage, “work smarter, not harder.” A decade ago the savviest Wall Streeters discovered a way to make millions doing no work at all.
You can’t “work” any smarter than that in my book.