D.C. Pension Advisor Indicted

Federal prosecutors Dec. 16 charged Alan B. Bond, president of Albriond Cap. Mangmnt., a N.Y-based advisory firm whose largest client was the $2.3 billion pension fund of the Amalgamated Transit Union Local 689 in Washington, D.C., with taking $6.9 million in kickbacks from brokerage firms to help pay for lavish gifts to ex-Local 689 boss James Thomas.

A fed. grand jury rendered an 11-count indictment against Bond, accusing him of conspiracy, fraud, bribery and making false statements. SEC also filed suit alleging Bond used some of the kickback money to purchase gratuities for pension fund trustees. Specifically, Bond allegedly provided Thomas, who also was a trustee of the fund, with tickets to Dallas Cowboy football games and Broadway shows, paid for his rooms at the prestigious St. Regis Hotel in N.Y., bought him expensive clothes and dinners, and supplied him with limousines and plane tickets. Thomas allegedly received gratuities worth at least $15,000. Thomas wasn’t named in the suits. SEC attorney Clifford C. Hyatt said the investigation is continuing.

Allegedly from Sep. 1993 to Nov. 1998, Bond sent trades to three stock-brokerage firms that had agreed to mark up trades and then kick back 57% to 80% of the increase to Bond. SEC charged that Bond also used the kickbacks for a lavish lifestyle, including a Fla. beachfront condo, 75 antique and luxury vehicles and up to $470,000 a month credit card bills. Bond’s attorney said he’ll plead not guilty. [Bond Buyer & Wash. Post 12/17/99]