Despite Financial Advisor’s Resignation, Tensions Remain on Atlanta’s Main Pension Board

Gray didn’t appear at Wednesday's board meeting, but a representative from his firm did. 

“On behalf of Gray and Company we’d like to thank you for your past support and the opportunity to have served this board and the city employees for almost two decades,” said Gray & Co.'s Kurt Lofters.

He didn’t discuss the allegations against his boss.

Gray is accused of steering $28 million in general employee pension money to his own hedge fund without disclosing his affiliation to some board members. He also allegedly failed to disclose significant personal debt and a lawsuit that accused him of fraud. ​

Later in the meeting, chairman Alfred Berry said the board is putting measures in place so the alleged misconduct involving Gray can't happen again.

“We did not hire this person. This person has been around for a while. And for that reason we are going through the motions of doing what we need to do to make sure that anything that’s inappropriate that’s happened we’re taking care of it.”

That includes a forensic audit and hiring a legal specialist to advise the board whether it can revoke the $28 million contract with Gray’s firm.  

Berry also formally gave credit to Angela Green, the board member who first raised concerns about Gray back in November. She maintains her concerns were ignored and criticized by most of the board, including the city's chief financial officer, Jim Beard.

Berry subsequently moved to rescind an April resolution aimed at distancing the board from Green’s concerns about Gray.

“She did something that was principled as far as she’s concerned and we should not in any way condemn her for doing something she felt compelled to do and obviously if you look at everything that’s transpired, it suggests that maybe she was right.”

Silence ensued.

“Don’t everybody speak at once,” quipped Berry. 

Tensions flared after some board members including Douglas Strachan said Berry was mischaracterizing the April resolution.

“What’s the urgency? She wasn’t censured. There was no action taken by this board,” said Strachan.

Board members argued the resolution wasn’t personal – it was about avoiding legal liability.

“We don’t want to grandstand because the news is here,” said Strachan.

“I’m not grandstanding sir,” responded Berry.

Strachen continued that bringing up the motion without it being on the agenda was unprofessional.

“If I’m not mistaken the resolution we passed (in April) was not on that agenda so I don’t want to hear it,” said Berry. “Let’s call an apple an apple.”

The chairman’s motion eventually failed, with four members, including the city’s CFO and the mayor’s appointee on the board, voting no.

It didn’t appear to phase Angela Green, who sat quietly during the whole debate. After the meeting, she said she appreciated the board chair’s attempt.

“I feel better to know that somebody else is paying attention besides me and, no, it’s not just grandstanding. It’s about these folks who are paying into this pension fund. I’m glad to see somebody care besides me,” said Green.

But she still wants Gray’s $28 million contract revoked. Green said one city attorney has already told her it’d be extremely difficult.

Meanwhile, Gray still advises the city’s police and fire pension boards, despite the fact he steered millions of their funds to his own firm. Mayor Kasim Reed has called on those boards to sever ties with Gray. The two boards meet Tuesday.