FORMER UNION INVESTMENT MANAGER INDICTED
KIM MARTINEAU Staff writer
Tuesday, December 19, 2000
Albany An investment manager accused of stealing $314,000 from a labor union's pension fund by concealing commissions he made on dozens of stock and bond trades has been indicted on embezzlement and wire fraud charges.
Between 1988 and 1996, Anthony DiPace managed the health and welfare plan for the Laborers International Union of North America Local 190, based in Glenmont, according to the indictment Friday in Federal District Court. While managing the fund, DiPace allegedly executed a series of trades through his private brokerage practice, Direction Planning on New Karner Road.
DiPace, 42, allegedly collected commissions on the trades without the fund's trustees' knowledge, violating federal rules that bar investment managers from acting as brokers in order to avoid potential conflicts of interest. The trustees paid DiPace to manage the fund based on a formula they had established.
DiPace allegedly executed the trades as a registered representative of Linsco Private Ledger, a national brokerage firm, even though the company does not allow brokers to have discretionary accounts. Between 1993 and 1996, he allegedly conducted 41 trades using Local 190 assets, earning him $314,000 in commissions through Linsco, according to the indictment.
In 1996, federal authorities monitored 10 phone calls DiPace made to a Linsco bond trader in San Diego. The transactions that took place over those phone conversations are included in the indictment.
Local 190 officials did not return phone calls for comment.
In February, DiPace was convicted of 11 counts of wire fraud in Hawaii for misrepresenting himself to two Honolulu money managers. DiPace claimed he had more clients than he actually had and lied about how much money he had under his management, according to federal prosecutors. DiPace is awaiting sentencing.