Baltimore County pension officials are privately scrambling to meet a deadline to file a lawsuit in an attempt to recover tens of millions of dollars in county pension funds.
County Budget Director Keith Dorsey and County Attorney Michael Field met with Council members Vicki Almond, Cathy Bevins, David Marks and Ken Oliver and members of the county auditor’s office late Monday prior to the council’s voting session. The subject of the meeting was the approval of a contract to hire an outside attorney to pursue a lawsuit against Merrill Lynch, multiple sources tell Patch, speaking on the condition of anonymity because they are not authorized to discuss the meeting publicly.
Almond confirmed the meeting, but said the discussion was confidential.
“This will all be discussed at a future date,” Almond said.
Oliver, reached by phone Tuesday, declined comment.
“I won’t comment on it,” said Oliver.
Marks also declined comment.
“The discussions were confidential,” said Marks.
Bevins did not return calls seeking comment.
At issue was a $21 million investment made nearly five years ago by a county employee in a fund invested primarily in subprime mortgages. The fund, called Mainsail II LLC, collapsed when the economy tanked and the housing bubble burst.
The outside attorney, who would work on a contingency fee basis, would file a lawsuit similar to that filed by Kings County, WA, in July 2010. The law firm would be paid more than 33 percent plus expenses, if the county wins its case, sources said.
Don Mohler, a spokesman and chief of staff to County Executive Kevin Kamenetz, acknowledged the meeting, but declined to answers questions about the subject.
"Mike Field had a confidential, closed, attorney-client briefing with the council about possible legal action that may or may not come before the council in the next couple of weeks," said Mohler.
Hmmmmm
and it makes me wonder who the County Employee was that was authorized to make a $21 million investment.........had to be someone high up with that much authority.........WOW..........the plot thickens is right!
I would guess that with all of the available attorneys tied up defending the county in various investigations involving the "Office of Fred," a little outside help is warranted. We're not talking about lunch money and if their not careful the period will be over.
Will this contract be 'wired'?
If they didn't lose it they would not have to pursue it. I do agree with your comment of - "Stop the madness!", but that would include something that no one has the courage to do and that would be fire Mr. Homan. At what point do you decide to cut your loses and move on? Lemmy, the feds have been breathing down their neck for years over some ADA issues and that hasn't budged them. Remember your dealing with the "Office of Fred."
I dare anyone on this site to challenge me on that one. In fact I double dare. Watch, you won't hear a peep.
There are only a very limited number of angles to pursue in these instances that have legal validity. They mainly revolve around due diligence which is very tricky since the crux of the accusation is that the parties knowingly misrepresented information. That said, what the county may be facing is the same issue California did which wasn't the municipalities fund manager misrepresented the risks, but that the state's contracting authority failed to properly vet the fiduciary agent. If Baltimore County failed in its task then it takes a real litigating cowboy to try to recover. Closed doors seems right for now but any council person coming upon the arrangement should end up clamoring for open reviews tout sweet to avoid the stench of impropriety. This has political disaster written all over it. If I was being paid, I'd throw a blanket over the whole affair based on compete clauses, bond sales, non-disclosure agreements, everything and the kitchen sink. If I was a local pol, I'd make a national rep by asking the SEC to step in.
So much for "Pending Approval" PORN ON PATCH!!! Priceless.