Pension Funds

Recovering Losses from Pension Funds

Millions of Americans depend on their pension funds to support them through their retirement plans. As the trustee of a pension fund, you know you have to make important investment decisions about how the fund will maintain and invest its assets.

Unfortunately, when making those investment choices, it can be easy to be lied to, misled, or given poor investment advice about the types of investments that should be selected for your retirement years. In extreme cases, financial advisors have even stolen pension assets by convincing the trustee to invest in what turned out to be fictitious investments.

At Shepherd Smith Edwards and Kantas (SSEK Law Firm at, we work with pension funds to help them get back the losses they sustained because they were the victims of fraud involving brokerage firm negligence or broker misconduct. Our seasoned investment fraud attorneys have recovered many millions of dollars on behalf of investors.

Of the thousands of clients we have represented in the years we have been in business, most of them have obtained total or partial financial recovery with our help. Contact SSEK Law Firm at (800) 259-9010 and ask for your free, initial case consultation.

When a Broker Defrauds a Pension Fund

It is quite common for a pension fund to hire an investment firm and task them with managing the investing of the fund’s assets. This broker-dealer has a duty to only make investment recommendations that are suitable for the fund. The firm also must disclose all risks involved and refrain from making any misrepresentations about the financial products or trading strategies that they are marketing.

Unfortunately, there are brokers who will still offer: unsuitable investment recommendations to earn commissions, give bad investing advice, make omissions, or misappropriate funds. When this happens, it is not just the fund that suffers. All of its participants and their beneficiaries end up losing money, too.

What Are Some Differences Between Private Pension Funds and Public Pension Funds?

Private pension fund plans are offered to employees by employers in the private sector. Public pension funds are for public sector employees, which today comprise the largest group with still active and growing pension funds.

Public pension plans are usually administered by local, state, or federal government entities. Unlike private funds, they are not subject to government regulation under the Employee Retirement Income Security Act of 1974 (ERISA). Instead, public pension funds must follow state rules.

It is against the law for financial advisors to give gifts, pay bribes, or issue kickbacks to fund officials to win the right to work with a pension fund. For example, in 2017, Ex-Sterne, Agee, and Leech broker and managing director Deborah Dickson Kelley pleaded guilty to securities fraud after taking part in a “pay-to-play” scam so as to work with the New York State Common Retirement Fund.

One of the largest pension funds in the country, it has $50B in state pension fund assets. According to prosecutors, Kelley bribed an official in order to direct business to her brokerage firm. This allowed her to earn hundreds of thousands of dollars in commissions.

Brokers are also not allowed to make stock trades based on confidential information about a pension fund and the investments it is making.

Brokerage firms can be held liable for losses sustained by a pension fund if their registered representative was the one who caused the financial harm. They may also be held accountable for carelessly investing a pension fund in a fraud, such as a Ponzi scam, especially if significant losses occurred.

Savvy Pension Fund Fraud Lawyers Who Will Fight For You

SSEK Law Firm has the knowledge and resources to go after even the largest firms on Wall Street. Our team of pension fund attorneys has over 100 years worth of experience in securities law. We have successfully represented all kinds of institutional investors in Financial Industry Regulatory Authority (FINRA) arbitration, private arbitration, mediation, and in federal and state courts.

We work with investors nationwide, as well as with investors abroad with broker fraud claims against US-based financial firms. Call (800) 259-9010 or contact us online today.

Client Reviews
"I am going to miss conversations with you, Sam Edwards. You’ve been a wonderful lawyer and a friend. I loved learning legal jargon from you. But, even more, it is your self-respect and commitment to your position that I admire and your persistent patience-your equanimity. With great appreciation, thank you!" M.B.
"My experience with Ryan Cook has been very positive. Through every step of the litigation he explained what to expect to happen. When I spoke with him later he reviewed the process. He was very patient, and I never felt rushed. I have already told friends how wonderful he is." L.R.
"I want you to know that I very much appreciate your expertise, hard work, and guidance that led to a satisfactory resolution with Raymond James. From our first meeting, I felt "heard" and that my situation and story were respected. Every subsequent interaction I had with any of you - in person, via email, or by phone - only corroborated that feeling. What great work you do on behalf of people like me who have been wronged, yet don't know how to navigate the appeals/mediation/arbitration process as you do. I will be forever grateful." M.L.
"Good positive experience. Guided us through a difficult process and was pleased with the outcome. Everyone I dealt with was exceptional." A.G.
"Good intelligent attorneys who never miss a beat. I set my expectations high, and they delivered above and beyond. Do not miss the opportunity to let SSEK represent you. Top-notch, efficient and effective firm." S.M.
Contact Us
  1. 1 Free Consultation
  2. 2 No Recovery, No Fee
  3. 3 Over 100 Years Experience

Fill out the contact form or call us at (800) 259-9010 to schedule your free consultation.