Prosecutors indict head of equity fund that held Kentucky Retirement Systems investment

jcheves@herald-leader.comFebruary 11, 2014 

New York prosecutors announced Monday the indictment of Lawrence E. Penn III, 44, whose Camelot Group equity fund held more than $24 million in investments for Kentucky Retirement Systems.

Penn and an alleged accomplice, Altura St. Michael Ewers, also 44, are charged with grand larceny, money laundering and 30 counts of falsifying business records, Manhattan District Attorney Cyrus Vance Jr. said. The men stole more than $9 million in investor funds, according to the indictment.

Last month, the U.S. Securities and Exchange Commission obtained an emergency court order to freeze the Camelot Group's assets and filed civil charges against Penn.

KRS, which provides retirement benefits for state and local government employees, is monitoring the case with its attorneys, pension officials said. KRS was one of the Camelot Group's earliest and largest investors.

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