IOWA TRUST FUND - Revision history

Randylyon at 17:09, 29 June 2016

2016-06-29T17:09:09Z

← Older revision		Revision as of 17:09, 29 June 2016
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	Wymer plead guilty in September, 1993 to defrauding cities in Iowa and California of $105 million. He admitted not only taking clients' money for personal use, but also to shifting money from one client to another to hide his investment losses. (29) He was sentenced to 14 years in prison in 1993.		Wymer plead guilty in September, 1993 to defrauding cities in Iowa and California of $105 million. He admitted not only taking clients' money for personal use, but also to shifting money from one client to another to hide his investment losses. (29) He was sentenced to 14 years in prison in 1993.

	In hindsight, the question was asked if the scandal could have been avoided. The Iowa Public Agency Investment Trust, a competing trust fund, warned municipalities that earnings announced by Iowa Trust were suspect. (30) Warnings were raised twice and both times the "whistleblower" was fired. As one of the two people fired remarked,"It's amazing what normally intelligent people will do for an extra two percent." (31) ~~In February 1992 as~~ Iowa ~~Trust assets remained frozen~~, ~~the City of Dubuque was losing $1~~,~~202~~.17, ~~the city pension fund was losing $708.69~~, ~~and~~ the ~~county was losing $433.33 in interest every day~~. (32)		In hindsight, the question was asked if the scandal could have been avoided. The Iowa Public Agency Investment Trust, a competing trust fund, warned municipalities that earnings announced by Iowa Trust were suspect. (30) Warnings were raised twice and both times the "whistleblower" was fired. As one of the two people fired remarked,"It's amazing what normally intelligent people will do for an extra two percent." (31) A former deputy Iowa treasurer later filed a lawsuit against State Treasurer Michael Fitzgerald, another deputy treasurer, and Welsh claiming she had been illegally fired for raising questions. A Des Moines jury, however, found in favor of the defendants. (32)

	In ~~August~~ 1992 the ~~city~~ of Dubuque ~~announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G~~. ~~Edwards & Sons~~, ~~which had required that investment transactions be run through~~ the ~~investment firm,~~ was ~~discontinued~~. ~~Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer~~, and the ~~city finance director~~. ~~The city council also approved a three-person advisory committee to oversee the city's investment practices~~. (33)		In February 1992 as Iowa Trust assets remained frozen, the City of Dubuque was losing $1,202.17, the city pension fund was losing $708.69, and the county was losing $433.33 in interest every day. (33)

	~~The investigations of Joseph Welsh continued.~~ In ~~December 1991 after being reprimanded by~~ the ~~Senate for using his position as~~ a ~~lawmaker~~ to ~~sell~~ the ~~investments to Iowa cities and counties~~, ~~Welsh faced~~ the ~~possibility of Wymer testifying against him~~. ~~Wymer claimed Welsh initiated the employment arrangement and asked for and received~~ "~~substantial~~" ~~cash payments to push laws favorable to~~ the ~~Iowa Trust. (34) Welsh stated he was eager to confront~~ the ~~embezzler~~ and ~~expected~~ the ~~investigation to end quickly because of lack of proof. (35) By way interactive television, Wymer made his charges against Welsh in five hours of testimony~~. The ~~Senate Ethics Committee then met and announced that~~ the ~~charges made by Wymer had not been satisfactorily proven and that the matter was considered closed~~. (36)		In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also approved a three-person advisory committee to oversee the city's investment practices. (34)

	Wymer was ~~sentenced~~ to ~~a federal prison camp for 14 years~~ and ~~7 months~~ and ~~began serving his sentence on July 12, 1993~~. (37)		The investigations of Joseph Welsh continued. In December 1991 after being reprimanded by the Senate for using his position as a lawmaker to sell the investments to Iowa cities and counties, Welsh faced the possibility of Wymer testifying against him. Wymer claimed Welsh initiated the employment arrangement and asked for and received "substantial" cash payments to push laws favorable to the Iowa Trust. (35) Welsh stated he was eager to confront the embezzler and expected the investigation to end quickly because of lack of proof. (36) By way interactive television, Wymer made his charges against Welsh in five hours of testimony. The Senate Ethics Committee then met and announced that the charges made by Wymer had not been satisfactorily proven and that the matter was considered closed. (37)

	In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (38)		Wymer was sentenced to a federal prison camp for 14 years and 7 months and began serving his sentence on July 12, 1993. (38)

			In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (39)


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	31. Glindinning, Mary. "Iowa Trust," ''Telegraph Herald'', January 26, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920126&printsec=frontpage&hl=en		31. Glindinning, Mary. "Iowa Trust," ''Telegraph Herald'', January 26, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920126&printsec=frontpage&hl=en

	32. "Misplaced Trust," ''Telegraph Herald'', February 2, 1992, p. 6A. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en		32. Webber, Steve. "Verdict in Lawsuit Seen as Welsh Vindication," ''Telegraph Herald'', April 26, 1994, p. 3A

			33. "Misplaced Trust," ''Telegraph Herald'', February 2, 1992, p. 6A. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en

	33. Dickel, Dean and Arnold, Bill. "City Funds Safer," ''Telegraph Herald'', August 30, 1992, p. 1		34. Dickel, Dean and Arnold, Bill. "City Funds Safer," ''Telegraph Herald'', August 30, 1992, p. 1

	34. Webber, Steve. "Attorney Expects Wymer to Testify," ''Telegraph Herald'', December 8, 1992, p. 1		35. Webber, Steve. "Attorney Expects Wymer to Testify," ''Telegraph Herald'', December 8, 1992, p. 1

	35. Webber, Steve and Dickel, Dean. "Welsh Wants to Confront Wymer," ''Telegraph Herald'', November 12, 1992, p. 3A		36. Webber, Steve and Dickel, Dean. "Welsh Wants to Confront Wymer," ''Telegraph Herald'', November 12, 1992, p. 3A

	36. Webber, Steve. "Ethics Panel Clears Welsh," ''Telegraph Herald'', December 31, 1992, p. 1		37. Webber, Steve. "Ethics Panel Clears Welsh," ''Telegraph Herald'', December 31, 1992, p. 1

	37. Dickel, Dean. "Wymer Gets Jail," ''Telegraph Herald'', May 12, 1993, p. 1		38. Dickel, Dean. "Wymer Gets Jail," ''Telegraph Herald'', May 12, 1993, p. 1

	38. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.		39. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.

	[[Category: Legal Jurisdiction]]		[[Category: Legal Jurisdiction]]
	[[Category: Legal Cases]]		[[Category: Legal Cases]]
	[[Category: Firsts]]		[[Category: Firsts]]

Randylyon at 03:37, 14 June 2016

2016-06-14T03:37:25Z

← Older revision		Revision as of 03:37, 14 June 2016
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	"This will be the first money that's actually come back to the state," said Bill Roach, a spokesman for the Iowa attorney general, who represented the trust. The trust continued to negotiate a settlement with the desert towns of Palm Desert, Indio and La Quinta over the remaining $19.5 million in the Shearson Lehman accounts. (24)		"This will be the first money that's actually come back to the state," said Bill Roach, a spokesman for the Iowa attorney general, who represented the trust. The trust continued to negotiate a settlement with the desert towns of Palm Desert, Indio and La Quinta over the remaining $19.5 million in the Shearson Lehman accounts. (24)

	$44 million ended up at Jefferson Bank & Trust in Lakewood, Colorado in what the Iowa attorney general described was "a complicated set of financial transactions engineered" by Wymer. (25) On May 4, 1993 a federal appeals court agreed that the $44 million belonged to dozens of Iowa communities. The bank said it would close if the funds were returned to Iowa. Iowa, however, won an earlier federal court suit; it was that ruling that the federal appeals court in Colorado upheld. (26)		$43 million ended up at Jefferson Bank & Trust in Lakewood, Colorado in what the Iowa attorney general described was "a complicated set of financial transactions engineered" by Wymer. (25) On May 4, 1993 a federal appeals court agreed that the $44 million belonged to dozens of Iowa communities. The bank said it would close if the funds were returned to Iowa. Iowa, however, won an earlier federal court suit; it was that ruling that the federal appeals court in Colorado upheld. (26) In what made the situation even more unique, a federal judge ruled in late September that the Federal Deposit Insurance Corporation (FDIC) which guarantees money kept in banks, owed the Iowa Trust more than $510,000 in interest. The ruling found that the FDIC was in contempt of the federal court because it did not pay interest on the $43 million in the Lakewood, Colorado bank when the Iowa Trust collapsed. David Lyons said it was first time the FDIC had been found in contempt. (27)

	With $17 million the Iowa Trust recovered earlier, the additional $44 million meant that the trust had recovered $61 million of the $75 million it was missing. (27)		With $17 million the Iowa Trust recovered earlier, the additional $44 million meant that the trust had recovered $61 million of the $75 million it was missing. (28)

	Wymer plead guilty in September, 1993 to defrauding cities in Iowa and California of $105 million. He admitted not only taking clients' money for personal use, but also to shifting money from one client to another to hide his investment losses. (28) He was sentenced to 14 years in prison in 1993.		Wymer plead guilty in September, 1993 to defrauding cities in Iowa and California of $105 million. He admitted not only taking clients' money for personal use, but also to shifting money from one client to another to hide his investment losses. (29) He was sentenced to 14 years in prison in 1993.

	In hindsight, the question was asked if the scandal could have been avoided. The Iowa Public Agency Investment Trust, a competing trust fund, warned municipalities that earnings announced by Iowa Trust were suspect. (29) Warnings were raised twice and both times the "whistleblower" was fired. As one of the two people fired remarked,"It's amazing what normally intelligent people will do for an extra two percent." (30) In February 1992 as Iowa Trust assets remained frozen, the City of Dubuque was losing $1,202.17, the city pension fund was losing $708.69, and the county was losing $433.33 in interest every day. (31)		In hindsight, the question was asked if the scandal could have been avoided. The Iowa Public Agency Investment Trust, a competing trust fund, warned municipalities that earnings announced by Iowa Trust were suspect. (30) Warnings were raised twice and both times the "whistleblower" was fired. As one of the two people fired remarked,"It's amazing what normally intelligent people will do for an extra two percent." (31) In February 1992 as Iowa Trust assets remained frozen, the City of Dubuque was losing $1,202.17, the city pension fund was losing $708.69, and the county was losing $433.33 in interest every day. (32)

	In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also approved a three-person advisory committee to oversee the city's investment practices. (32)		In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also approved a three-person advisory committee to oversee the city's investment practices. (33)

	The investigations of Joseph Welsh continued. In December 1991 after being reprimanded by the Senate for using his position as a lawmaker to sell the investments to Iowa cities and counties, Welsh faced the possibility of Wymer testifying against him. Wymer claimed Welsh initiated the employment arrangement and asked for and received "substantial" cash payments to push laws favorable to the Iowa Trust. (33) Welsh stated he was eager to confront the embezzler and expected the investigation to end quickly because of lack of proof. (34) By way interactive television, Wymer made his charges against Welsh in five hours of testimony. The Senate Ethics Committee then met and announced that the charges made by Wymer had not been satisfactorily proven and that the matter was considered closed. (35)		The investigations of Joseph Welsh continued. In December 1991 after being reprimanded by the Senate for using his position as a lawmaker to sell the investments to Iowa cities and counties, Welsh faced the possibility of Wymer testifying against him. Wymer claimed Welsh initiated the employment arrangement and asked for and received "substantial" cash payments to push laws favorable to the Iowa Trust. (34) Welsh stated he was eager to confront the embezzler and expected the investigation to end quickly because of lack of proof. (35) By way interactive television, Wymer made his charges against Welsh in five hours of testimony. The Senate Ethics Committee then met and announced that the charges made by Wymer had not been satisfactorily proven and that the matter was considered closed. (36)

	Wymer was sentenced to a federal prison camp for 14 years and 7 months and began serving his sentence on July 12, 1993. (36)		Wymer was sentenced to a federal prison camp for 14 years and 7 months and began serving his sentence on July 12, 1993. (37)

	In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (37)		In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (38)


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	26. Ibid.		26. Ibid.

	27. ~~Ibid~~.		27. Webber, Steve. "FDIC Owes Iowa Trust $510,000," ''Telegraph Herald'', October 2, 1993, p. 1

	28. ~~Ibid.~~		28. Flagg

	29. ~~"Many Red Flags But Investors Not Personally Liable," ''Telegraph Herald'', February 2, 1992, p~~. ~~1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en~~		29. Ibid.

	30~~. Glindinning, Mary~~. "~~Iowa Trust~~," ''Telegraph Herald'', ~~January 26~~, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=~~19920126~~&printsec=frontpage&hl=en		30. "Many Red Flags But Investors Not Personally Liable," ''Telegraph Herald'', February 2, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en

	31. "~~Misplaced~~ Trust," ''Telegraph Herald'', ~~February 2~~, 1992, p. 6A. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=~~19920202~~&printsec=frontpage&hl=en		31. Glindinning, Mary. "Iowa Trust," ''Telegraph Herald'', January 26, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920126&printsec=frontpage&hl=en

	32~~. Dickel, Dean and Arnold, Bill~~. "~~City Funds Safer~~," ''Telegraph Herald'', ~~August 30~~, 1992, p. 1		32. "Misplaced Trust," ''Telegraph Herald'', February 2, 1992, p. 6A. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en

	33. ~~Webber~~, ~~Steve~~. "~~Attorney Expects Wymer to Testify~~," ''Telegraph Herald'', ~~December 8~~, 1992, p. 1		33. Dickel, Dean and Arnold, Bill. "City Funds Safer," ''Telegraph Herald'', August 30, 1992, p. 1

	34. Webber, Steve ~~and Dickel, Dean~~. "~~Welsh Wants~~ to ~~Confront Wymer~~," ''Telegraph Herald'', ~~November 12~~, 1992, p. 3A		34. Webber, Steve. "Attorney Expects Wymer to Testify," ''Telegraph Herald'', December 8, 1992, p. 1

	35. Webber, Steve. "~~Ethics Panel Clears~~ Welsh," ''Telegraph Herald'', ~~December 31~~, 1992, p. 1		35. Webber, Steve and Dickel, Dean. "Welsh Wants to Confront Wymer," ''Telegraph Herald'', November 12, 1992, p. 3A

	36. ~~Dickel~~, ~~Dean~~. "~~Wymer Gets Jail~~," ''Telegraph Herald'', ~~May 12~~, ~~1993~~, p. 1		36. Webber, Steve. "Ethics Panel Clears Welsh," ''Telegraph Herald'', December 31, 1992, p. 1

	37. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.		37. Dickel, Dean. "Wymer Gets Jail," ''Telegraph Herald'', May 12, 1993, p. 1

			38. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.

	[[Category: Legal Jurisdiction]]		[[Category: Legal Jurisdiction]]
	[[Category: Legal Cases]]		[[Category: Legal Cases]]
			[[Category: Firsts]]

Randylyon at 15:21, 1 June 2016

2016-06-01T15:21:52Z

← Older revision		Revision as of 15:21, 1 June 2016
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	In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also approved a three-person advisory committee to oversee the city's investment practices. (32)		In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also approved a three-person advisory committee to oversee the city's investment practices. (32)

	The investigations of Joseph Welsh continued. In December after being reprimanded by the Senate for using his position as a lawmaker to sell the investments to Iowa cities and counties, Welsh faced the possibility of Wymer testifying against him. Wymer claimed Welsh initiated the employment arrangement and asked for and received "substantial" cash payments to push laws favorable to the Iowa Trust. (33) Welsh stated he was eager to confront the embezzler and expected the investigation to end quickly because of lack of proof. (34) By way interactive television, Wymer made his charges against Welsh in five hours of testimony. The Senate Ethics Committee then met and announced that the charges made by Wymer had not been satisfactorily proven and that the matter was considered closed. (35)		The investigations of Joseph Welsh continued. In December 1991 after being reprimanded by the Senate for using his position as a lawmaker to sell the investments to Iowa cities and counties, Welsh faced the possibility of Wymer testifying against him. Wymer claimed Welsh initiated the employment arrangement and asked for and received "substantial" cash payments to push laws favorable to the Iowa Trust. (33) Welsh stated he was eager to confront the embezzler and expected the investigation to end quickly because of lack of proof. (34) By way interactive television, Wymer made his charges against Welsh in five hours of testimony. The Senate Ethics Committee then met and announced that the charges made by Wymer had not been satisfactorily proven and that the matter was considered closed. (35)

	In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (36)		Wymer was sentenced to a federal prison camp for 14 years and 7 months and began serving his sentence on July 12, 1993. (36)

			In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (37)


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	35. Webber, Steve. "Ethics Panel Clears Welsh," ''Telegraph Herald'', December 31, 1992, p. 1		35. Webber, Steve. "Ethics Panel Clears Welsh," ''Telegraph Herald'', December 31, 1992, p. 1

	36. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.		36. Dickel, Dean. "Wymer Gets Jail," ''Telegraph Herald'', May 12, 1993, p. 1

			37. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.

	[[Category: Legal Jurisdiction]]		[[Category: Legal Jurisdiction]]
	[[Category: Legal Cases]]		[[Category: Legal Cases]]

Randylyon at 17:45, 30 May 2016

2016-05-30T17:45:51Z

← Older revision		Revision as of 17:45, 30 May 2016
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	In October 1992 the City of Dubuque and seven other governmental bodies with money tied up in the Trust were given clearance by District Judge Michael Streit to proceed with a $71 million law suit against a prestigious Des Moines Law firm. The firm of Davis, Hockenberg, Wine, Brown, Koehn & Shors was charged with failing to monitor investments and protect the investment pool from fraud. The judge also ordered the man leading the effort to recover the money to join the suit. (19)		In October 1992 the City of Dubuque and seven other governmental bodies with money tied up in the Trust were given clearance by District Judge Michael Streit to proceed with a $71 million law suit against a prestigious Des Moines Law firm. The firm of Davis, Hockenberg, Wine, Brown, Koehn & Shors was charged with failing to monitor investments and protect the investment pool from fraud. The judge also ordered the man leading the effort to recover the money to join the suit. (19)

	Efforts to recover the money were led by [[LYONS, David J.\|David J. LYONS]], Iowa Insurance Commissioner and court-appointed receiver for the Iowa Trust. (20) In December 1992 $7 million was recovered that had been in the account of an insurance program for California towns. (21) The Coachella Valley Joint Powers Insurance Authority, a pool by which 23 towns insured themselves, settled part of the case out of court by agreeing to turn over the $7 million to Iowa Trust, keeping only the remaining $1 million in the account for itself. (22)		Efforts to recover the money were led by [[LYONS, David J.\|David J. LYONS]], Iowa Insurance Commissioner and court-appointed receiver for the Iowa Trust. (20) In December 1992 $7 million was recovered that had been in the account of an insurance program for California towns. (21) The Coachella Valley Joint Powers Insurance Authority, a pool by which 23 towns insured themselves, settled part of the case out of court by agreeing to turn over the $7.1 million to Iowa Trust, keeping only the remaining $1 million in the account for itself. (22) Faced with a $300,000 shortfall in the city budget, the news meant that the city would be receiving an estimated $1.6 million which would be distributed as early as the second week in February 1993. (23)

	"This will be the first money that's actually come back to the state," said Bill Roach, a spokesman for the Iowa attorney general, who represented the trust. The trust continued to negotiate a settlement with the desert towns of Palm Desert, Indio and La Quinta over the remaining $19.5 million in the Shearson Lehman accounts. (23)		"This will be the first money that's actually come back to the state," said Bill Roach, a spokesman for the Iowa attorney general, who represented the trust. The trust continued to negotiate a settlement with the desert towns of Palm Desert, Indio and La Quinta over the remaining $19.5 million in the Shearson Lehman accounts. (24)

	$44 million ended up at Jefferson Bank & Trust in Lakewood, Colorado in what the Iowa attorney general described was "a complicated set of financial transactions engineered" by Wymer. (24) On May 4, 1993 a federal appeals court agreed that the $44 million belonged to dozens of Iowa communities. The bank said it would close if the funds were returned to Iowa. Iowa, however, won an earlier federal court suit; it was that ruling that the federal appeals court in Colorado upheld. (25)		$44 million ended up at Jefferson Bank & Trust in Lakewood, Colorado in what the Iowa attorney general described was "a complicated set of financial transactions engineered" by Wymer. (25) On May 4, 1993 a federal appeals court agreed that the $44 million belonged to dozens of Iowa communities. The bank said it would close if the funds were returned to Iowa. Iowa, however, won an earlier federal court suit; it was that ruling that the federal appeals court in Colorado upheld. (26)

	With $17 million the Iowa Trust recovered earlier, the additional $44 million meant that the trust had recovered $61 million of the $75 million it was missing. (26)		With $17 million the Iowa Trust recovered earlier, the additional $44 million meant that the trust had recovered $61 million of the $75 million it was missing. (27)

	Wymer plead guilty in September, 1993 to defrauding cities in Iowa and California of $105 million. He admitted not only taking clients' money for personal use, but also to shifting money from one client to another to hide his investment losses. (27) He was sentenced to 14 years in prison in 1993.		Wymer plead guilty in September, 1993 to defrauding cities in Iowa and California of $105 million. He admitted not only taking clients' money for personal use, but also to shifting money from one client to another to hide his investment losses. (28) He was sentenced to 14 years in prison in 1993.

	In hindsight, the question was asked if the scandal could have been avoided. The Iowa Public Agency Investment Trust, a competing trust fund, warned municipalities that earnings announced by Iowa Trust were suspect. (28) Warnings were raised twice and both times the "whistleblower" was fired. As one of the two people fired remarked,"It's amazing what normally intelligent people will do for an extra two percent." (29) In February 1992 as Iowa Trust assets remained frozen, the City of Dubuque was losing $1,202.17, the city pension fund was losing $708.69, and the county was losing $433.33 in interest every day. (30)		In hindsight, the question was asked if the scandal could have been avoided. The Iowa Public Agency Investment Trust, a competing trust fund, warned municipalities that earnings announced by Iowa Trust were suspect. (29) Warnings were raised twice and both times the "whistleblower" was fired. As one of the two people fired remarked,"It's amazing what normally intelligent people will do for an extra two percent." (30) In February 1992 as Iowa Trust assets remained frozen, the City of Dubuque was losing $1,202.17, the city pension fund was losing $708.69, and the county was losing $433.33 in interest every day. (31)

	In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also approved a three-person advisory committee to oversee the city's investment practices. (31)		In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also approved a three-person advisory committee to oversee the city's investment practices. (32)

	The investigations of Joseph Welsh continued. In December after being reprimanded by the Senate for using his position as a lawmaker to sell the investments to Iowa cities and counties, Welsh faced the possibility of Wymer testifying against him. Wymer claimed Welsh initiated the employment arrangement and asked for and received "substantial" cash payments to push laws favorable to the Iowa Trust. (32) Welsh stated he was eager to confront the embezzler and expected the investigation to end quickly because of lack of proof. (33) By way interactive television, Wymer made his charges against Welsh in five hours of testimony. The Senate Ethics Committee then met and announced that the charges made by Wymer had not been satisfactorily proven and that the matter was considered closed. (34)		The investigations of Joseph Welsh continued. In December after being reprimanded by the Senate for using his position as a lawmaker to sell the investments to Iowa cities and counties, Welsh faced the possibility of Wymer testifying against him. Wymer claimed Welsh initiated the employment arrangement and asked for and received "substantial" cash payments to push laws favorable to the Iowa Trust. (33) Welsh stated he was eager to confront the embezzler and expected the investigation to end quickly because of lack of proof. (34) By way interactive television, Wymer made his charges against Welsh in five hours of testimony. The Senate Ethics Committee then met and announced that the charges made by Wymer had not been satisfactorily proven and that the matter was considered closed. (35)

	In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (35)		In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (36)


Line 113:		Line 113:
	22. Ibid.		22. Ibid.

	23. ~~Ibid~~.		23. Arnold, Bill. "City to Receive $1.6 Million Trust Settlement," ''Telegraph Herald,'' February 2, 1993, p. 3A

	24. Flagg~~, Michael. "Iowa Cities Get $44 Million in Wymer Case," ''Los Angeles Times'', May 5, 1993. Online: http://articles.latimes.com/1993-05-05/business/fi-31615_1_iowa-cities~~		24. Flagg

	25. ~~Ibid~~.		25. Flagg, Michael. "Iowa Cities Get $44 Million in Wymer Case," ''Los Angeles Times'', May 5, 1993. Online: http://articles.latimes.com/1993-05-05/business/fi-31615_1_iowa-cities

	26. Ibid.		26. Ibid.
Line 123:		Line 123:
	27. Ibid.		27. Ibid.

	28. ~~"Many Red Flags But Investors Not Personally Liable," ''Telegraph Herald'', February 2, 1992, p~~. ~~1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en~~		28. Ibid.

	29~~. Glindinning, Mary~~. "~~Iowa Trust~~," ''Telegraph Herald'', ~~January 26~~, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=~~19920126~~&printsec=frontpage&hl=en		29. "Many Red Flags But Investors Not Personally Liable," ''Telegraph Herald'', February 2, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en

	30. "~~Misplaced~~ Trust," ''Telegraph Herald'', ~~February 2~~, 1992, p. 6A. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=~~19920202~~&printsec=frontpage&hl=en		30. Glindinning, Mary. "Iowa Trust," ''Telegraph Herald'', January 26, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920126&printsec=frontpage&hl=en

	31~~. Dickel, Dean and Arnold, Bill~~. "~~City Funds Safer~~," ''Telegraph Herald'', ~~August 30~~, 1992, p. 1		31. "Misplaced Trust," ''Telegraph Herald'', February 2, 1992, p. 6A. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en

	32. ~~Webber~~, ~~Steve~~. "~~Attorney Expects Wymer to Testify~~," ''Telegraph Herald'', ~~December 8~~, 1992, p. 1		32. Dickel, Dean and Arnold, Bill. "City Funds Safer," ''Telegraph Herald'', August 30, 1992, p. 1

	33. Webber, Steve ~~and Dickel, Dean~~. "~~Welsh Wants~~ to ~~Confront Wymer~~," ''Telegraph Herald'', ~~November 12~~, 1992, p. 3A		33. Webber, Steve. "Attorney Expects Wymer to Testify," ''Telegraph Herald'', December 8, 1992, p. 1

	34. Webber, Steve. "~~Ethics Panel Clears~~ Welsh," ''Telegraph Herald'', ~~December 31~~, 1992, p. 1		34. Webber, Steve and Dickel, Dean. "Welsh Wants to Confront Wymer," ''Telegraph Herald'', November 12, 1992, p. 3A

	35. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.		35. Webber, Steve. "Ethics Panel Clears Welsh," ''Telegraph Herald'', December 31, 1992, p. 1

			36. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.

	[[Category: Legal Jurisdiction]]		[[Category: Legal Jurisdiction]]
	[[Category: Legal Cases]]		[[Category: Legal Cases]]

Randylyon at 02:08, 29 May 2016

2016-05-29T02:08:59Z

← Older revision		Revision as of 02:08, 29 May 2016
Line 41:		Line 41:
	In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also approved a three-person advisory committee to oversee the city's investment practices. (31)		In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also approved a three-person advisory committee to oversee the city's investment practices. (31)

	The investigations of Joseph Welsh continued. In December after being reprimanded by the Senate for using his position as a lawmaker to sell the investments to Iowa cities and counties, Welsh faced the possibility of Wymer testifying against him. Wymer claimed Welsh initiated the employment arrangement and asked for and received "substantial" cash payments to push laws favorable to the Iowa Trust. (32) Welsh stated he was eager to confront the embezzler and expected the investigation to end quickly because of lack of proof. (33)		The investigations of Joseph Welsh continued. In December after being reprimanded by the Senate for using his position as a lawmaker to sell the investments to Iowa cities and counties, Welsh faced the possibility of Wymer testifying against him. Wymer claimed Welsh initiated the employment arrangement and asked for and received "substantial" cash payments to push laws favorable to the Iowa Trust. (32) Welsh stated he was eager to confront the embezzler and expected the investigation to end quickly because of lack of proof. (33) By way interactive television, Wymer made his charges against Welsh in five hours of testimony. The Senate Ethics Committee then met and announced that the charges made by Wymer had not been satisfactorily proven and that the matter was considered closed. (34)

	In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (34)		In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (35)


Line 135:		Line 135:
	33. Webber, Steve and Dickel, Dean. "Welsh Wants to Confront Wymer," ''Telegraph Herald'', November 12, 1992, p. 3A		33. Webber, Steve and Dickel, Dean. "Welsh Wants to Confront Wymer," ''Telegraph Herald'', November 12, 1992, p. 3A

	34. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.		34. Webber, Steve. "Ethics Panel Clears Welsh," ''Telegraph Herald'', December 31, 1992, p. 1

			35. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.

	[[Category: Legal Jurisdiction]]		[[Category: Legal Jurisdiction]]
	[[Category: Legal Cases]]		[[Category: Legal Cases]]

Randylyon at 01:19, 29 May 2016

2016-05-29T01:19:01Z

← Older revision		Revision as of 01:19, 29 May 2016
Line 39:		Line 39:
	In hindsight, the question was asked if the scandal could have been avoided. The Iowa Public Agency Investment Trust, a competing trust fund, warned municipalities that earnings announced by Iowa Trust were suspect. (28) Warnings were raised twice and both times the "whistleblower" was fired. As one of the two people fired remarked,"It's amazing what normally intelligent people will do for an extra two percent." (29) In February 1992 as Iowa Trust assets remained frozen, the City of Dubuque was losing $1,202.17, the city pension fund was losing $708.69, and the county was losing $433.33 in interest every day. (30)		In hindsight, the question was asked if the scandal could have been avoided. The Iowa Public Agency Investment Trust, a competing trust fund, warned municipalities that earnings announced by Iowa Trust were suspect. (28) Warnings were raised twice and both times the "whistleblower" was fired. As one of the two people fired remarked,"It's amazing what normally intelligent people will do for an extra two percent." (29) In February 1992 as Iowa Trust assets remained frozen, the City of Dubuque was losing $1,202.17, the city pension fund was losing $708.69, and the county was losing $433.33 in interest every day. (30)

	In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also ~~aprroved~~ a three-person advisory committee to oversee the city's investment practices. (31)		In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also approved a three-person advisory committee to oversee the city's investment practices. (31)

	In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (32)		The investigations of Joseph Welsh continued. In December after being reprimanded by the Senate for using his position as a lawmaker to sell the investments to Iowa cities and counties, Welsh faced the possibility of Wymer testifying against him. Wymer claimed Welsh initiated the employment arrangement and asked for and received "substantial" cash payments to push laws favorable to the Iowa Trust. (32) Welsh stated he was eager to confront the embezzler and expected the investigation to end quickly because of lack of proof. (33)

			In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (34)


Line 129:		Line 131:
	31. Dickel, Dean and Arnold, Bill. "City Funds Safer," ''Telegraph Herald'', August 30, 1992, p. 1		31. Dickel, Dean and Arnold, Bill. "City Funds Safer," ''Telegraph Herald'', August 30, 1992, p. 1

	32. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.		32. Webber, Steve. "Attorney Expects Wymer to Testify," ''Telegraph Herald'', December 8, 1992, p. 1

			33. Webber, Steve and Dickel, Dean. "Welsh Wants to Confront Wymer," ''Telegraph Herald'', November 12, 1992, p. 3A

			34. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.

	[[Category: Legal Jurisdiction]]		[[Category: Legal Jurisdiction]]
	[[Category: Legal Cases]]		[[Category: Legal Cases]]

Randylyon: q

2016-05-26T20:03:25Z

Show changes

Randylyon at 19:14, 23 May 2016

2016-05-23T19:14:13Z

← Older revision		Revision as of 19:14, 23 May 2016
Line 25:		Line 25:
	As part of a plea agreement, Steven Wymer cooperated with Iowa authorities in recovering $75 million belonging to the Iowa Trust investors. Federal investigators were at first hindered in their work because Wymer had destroyed many of the documents in the Institutional Treasury Management office. In addition to his cooperation, Wymer had to forfeit $11 million in personal assets to cover the remaining shortage of money. He also gave up his securities license. (18)		As part of a plea agreement, Steven Wymer cooperated with Iowa authorities in recovering $75 million belonging to the Iowa Trust investors. Federal investigators were at first hindered in their work because Wymer had destroyed many of the documents in the Institutional Treasury Management office. In addition to his cooperation, Wymer had to forfeit $11 million in personal assets to cover the remaining shortage of money. He also gave up his securities license. (18)

	~~Through efforts~~ led by [[LYONS, David J.\|David J. LYONS]], Iowa Insurance Commissioner~~, recovered~~ $7 million ~~in December 1992~~ that had been in the account of an insurance program for California towns. (19) The Coachella Valley Joint Powers Insurance Authority, a pool by which 23 towns insured themselves, settled part of the case out of court by agreeing to turn over the $7 million to Iowa Trust, keeping only the remaining $1 million in the account for itself. (20)		Efforts to recover the money were led by [[LYONS, David J.\|David J. LYONS]], Iowa Insurance Commissioner and court-appointed receiver for the Iowa Trust. (19) In December 1992 $7 million was recovered that had been in the account of an insurance program for California towns. (20) The Coachella Valley Joint Powers Insurance Authority, a pool by which 23 towns insured themselves, settled part of the case out of court by agreeing to turn over the $7 million to Iowa Trust, keeping only the remaining $1 million in the account for itself. (21)

	"This will be the first money that's actually come back to the state," said Bill Roach, a spokesman for the Iowa attorney general, who represented the trust. The trust continued to negotiate a settlement with the desert towns of Palm Desert, Indio and La Quinta over the remaining $19.5 million in the Shearson Lehman accounts. (21)		"This will be the first money that's actually come back to the state," said Bill Roach, a spokesman for the Iowa attorney general, who represented the trust. The trust continued to negotiate a settlement with the desert towns of Palm Desert, Indio and La Quinta over the remaining $19.5 million in the Shearson Lehman accounts. (22)

	$44 million ended up at Jefferson Bank & Trust in Lakewood, Colorado in what the Iowa attorney general described was "a complicated set of financial transactions engineered" by Wymer. (22) On May 4, 1993 a federal appeals court agreed that the $44 million belonged to dozens of Iowa communities. The bank said it would close if the funds were returned to Iowa. Iowa, however, won an earlier federal court suit; it was that ruling that the federal appeals court in Colorado upheld. (23)		$44 million ended up at Jefferson Bank & Trust in Lakewood, Colorado in what the Iowa attorney general described was "a complicated set of financial transactions engineered" by Wymer. (23) On May 4, 1993 a federal appeals court agreed that the $44 million belonged to dozens of Iowa communities. The bank said it would close if the funds were returned to Iowa. Iowa, however, won an earlier federal court suit; it was that ruling that the federal appeals court in Colorado upheld. (24)

	With $17 million the Iowa Trust recovered earlier, the additional $44 million meant that the trust had recovered $61 million of the $75 million it was missing. (24)		With $17 million the Iowa Trust recovered earlier, the additional $44 million meant that the trust had recovered $61 million of the $75 million it was missing. (25)

	Wymer plead guilty in September, 1993 to defrauding cities in Iowa and California of $105 million. He admitted not only taking clients' money for personal use, but also to shifting money from one client to another to hide his investment losses. (25) He was sentenced to 14 years in prison in 1993.		Wymer plead guilty in September, 1993 to defrauding cities in Iowa and California of $105 million. He admitted not only taking clients' money for personal use, but also to shifting money from one client to another to hide his investment losses. (26) He was sentenced to 14 years in prison in 1993.

	In hindsight, the question was asked if the scandal could have been avoided. The Iowa Public Agency Investment Trust, a competing trust fund, warned municipalities that earnings announced by Iowa Trust were suspect. (26) Warnings were raised twice and both times the "whistleblower" was fired. As one of the two people fired remarked,"It's amazing what normally intelligent people will do for an extra two percent." (27) In February 1992 as Iowa Trust assets remained frozen, the City of Dubuque was losing $1,202.17, the city pension fund was losing $708.69, and the county was losing $433.33 in interest every day. (28)		In hindsight, the question was asked if the scandal could have been avoided. The Iowa Public Agency Investment Trust, a competing trust fund, warned municipalities that earnings announced by Iowa Trust were suspect. (27) Warnings were raised twice and both times the "whistleblower" was fired. As one of the two people fired remarked,"It's amazing what normally intelligent people will do for an extra two percent." (28) In February 1992 as Iowa Trust assets remained frozen, the City of Dubuque was losing $1,202.17, the city pension fund was losing $708.69, and the county was losing $433.33 in interest every day. (29)

	In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also aprroved a three-person advisory committee to oversee the city's investment practices. (29)		In August 1992 the city of Dubuque announced a new administration and new investment policy to change the way it handled surplus funds. The emphasis would be on safety rather than return. The monitoring service with A. G. Edwards & Sons, which had required that investment transactions be run through the investment firm, was discontinued. Investment monitoring would be done "in house" with a committee including the city manager, the manager of administrative services for the city, city treasurer, and the city finance director. The city council also aprroved a three-person advisory committee to oversee the city's investment practices. (30)

	In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (30)		In October, 1996 city of Dubuque officials announced that the city would recover $500,000. The money represented the interest the city would have received on its principal in Iowa Trust had it not been misappropriated by the fund's manager. The money was part of a $2 million settlement Dubuque and 87 other municipalities reached with Davis, Hockenberg, Wine, Brown, Koehn and Shors, the Des Moines law firm that represented Iowa Trust. The firm had been found guilty of negligence in December 1995. Pauline Joyce, the Dubuque city budget manager, said that the city had now recovered its entire $23.9 million investment in the fund plus more than $916,000 in interest. (31)


Line 101:		Line 101:
	18. Dickel, Dean. "Wymer to Aid Trust Recovery," ''Telegraph Herald'', September 5, 1992, p. 1		18. Dickel, Dean. "Wymer to Aid Trust Recovery," ''Telegraph Herald'', September 5, 1992, p. 1

	19. ~~Flagg~~, ~~Michael~~. "~~Iowa Towns Trust, Biggest Victim in~~ Wymer ~~Scam~~, ~~Will Recover $7 Million : Lawsuit: Insurance Pool that Includes Stanton Will Give Up Part of $100 Million Embezzled by Newport Beach Investor~~," ~~Los Angeles Times~~, ~~December 3~~, ~~1992~~. ~~Online: http://articles.latimes.com/1992-12-03/business/fi-2128_1_iowa-trust~~		19. Dickel, Dean. "Wymer's Deception Called Smooth, Well-Planned," Telegraph Herald, October 10, 19923, p. 1

	20. ~~Ibid~~.		20. Flagg, Michael. "Iowa Towns Trust, Biggest Victim in Wymer Scam, Will Recover $7 Million : Lawsuit: Insurance Pool that Includes Stanton Will Give Up Part of $100 Million Embezzled by Newport Beach Investor," Los Angeles Times, December 3, 1992. Online: http://articles.latimes.com/1992-12-03/business/fi-2128_1_iowa-trust

	21. Ibid.		21. Ibid.

	22. ~~Flagg, Michael~~. ~~"Iowa Cities Get $44 Million in Wymer Case," ''Los Angeles Times'', May 5, 1993. Online: http://articles.latimes.com/1993-05-05/business/fi-31615_1_iowa-cities~~		22. Ibid.

	23. ~~Ibid~~.		23. Flagg, Michael. "Iowa Cities Get $44 Million in Wymer Case," ''Los Angeles Times'', May 5, 1993. Online: http://articles.latimes.com/1993-05-05/business/fi-31615_1_iowa-cities

	24. Ibid.		24. Ibid.
Line 115:		Line 115:
	25. Ibid.		25. Ibid.

	26. ~~"Many Red Flags But Investors Not Personally Liable," ''Telegraph Herald'', February 2, 1992, p~~. ~~1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en~~		26. Ibid.

	27~~. Glindinning, Mary~~. "~~Iowa Trust~~," ''Telegraph Herald'', ~~January 26~~, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=~~19920126~~&printsec=frontpage&hl=en		27. "Many Red Flags But Investors Not Personally Liable," ''Telegraph Herald'', February 2, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en

	28. "~~Misplaced~~ Trust," ''Telegraph Herald'', ~~February 2~~, 1992, p. 6A. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=~~19920202~~&printsec=frontpage&hl=en		28. Glindinning, Mary. "Iowa Trust," ''Telegraph Herald'', January 26, 1992, p. 1. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920126&printsec=frontpage&hl=en

	29~~. Dickel, Dean and Arnold, Bill~~. "~~City Funds Safer~~," ''Telegraph Herald'', ~~August 30~~, 1992, p. 1		29. "Misplaced Trust," ''Telegraph Herald'', February 2, 1992, p. 6A. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en

	30. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.		30. Dickel, Dean and Arnold, Bill. "City Funds Safer," ''Telegraph Herald'', August 30, 1992, p. 1

			31. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.

	[[Category: Legal Jurisdiction]]		[[Category: Legal Jurisdiction]]
	[[Category: Legal Cases]]		[[Category: Legal Cases]]

Randylyon at 00:34, 23 May 2016

2016-05-23T00:34:55Z

Show changes

Randylyon at 21:06, 22 May 2016

2016-05-22T21:06:25Z

← Older revision		Revision as of 21:06, 22 May 2016
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	27. "Misplaced Trust," ''Telegraph Herald'', February 2, 1992, p. 6A. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en		27. "Misplaced Trust," ''Telegraph Herald'', February 2, 1992, p. 6A. Online: https://news.google.com/newspapers?nid=aEyKTaVlRPYC&dat=19920202&printsec=frontpage&hl=en

	28. Dickel, Dean and Arnold, Bill. "City Funds Safer," Telegraph Herald, August 30, 1992, p. 1		28. Dickel, Dean and Arnold, Bill. "City Funds Safer," ''Telegraph Herald'', August 30, 1992, p. 1

	29. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.		29. McDermott, Brad. "City 'Closes Books' with Iowa Trust Payment," ''Telegraph Herald'', October 18, 1996, p. 1.