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Some KRS Issues So Glaring Our Eyes Still Roll

June 14th, 2012 · 3 Comments

An episode of American Greed profiled Kenneth Starr and focused primarily on how he conned celebrities like Sylvester Stallone out of tons of cash in a weird ponzi scheme.

You probably don’t watch CNBC, so you’ll likely never see it.

Why is it important?

Starr was a partner at Diamond Edge Capital. Diamond Edge? A Kentucky Retirement Systems placement agent firm. Two of its brokers – Marvin Rosen and Glen Sergeon – are listed as receiving commissions. And they’re the folks “helping” KRS.

Why are we bringing it up?

Because Steve Beshear continues to pretend that everything is puppies and rainbows at KRS. Jack Conway doesn’t see it fit to investigate at an agency at which his top political guy has served as a placement agent. And Crit Luallen’s audit merely glossed over the mountains of scandal. Don’t worry, we won’t rehash it all.

Though, had Luallen done a simple Financial Industry Regulatory Authority (FINRA) search on Glen Sergeon or Mavin Rosen, she would have discovered in disclosures that Diamond Edge faced problems as a placement agent group in New Mexico, where it was accused of pay for play:


CLICK TO ENLARGE

Or maybe she did? Because she mentioned New Mexico investment lawsuits briefly in her report. She just conveniently neglected to disclose that both Rosen and Diamond Edge were named in the suit. Turning a major blind eye.

On April 30, 2008, KRS placed $50 million with Vista Equity Partners. Vista kicked a $750,000 commission to Diamond Edge, reporting that the fee was split between Marvin Rosen and Glen Sergeon. On September 30, 2008, KRS invested $75 million with Crestview Partners. Crestview kicked a $1.1 million commission to Diamond Edge, listing the commission going solely to Glen Sergeon. Two people and a company involved in a monster scandal. And it was nothing to see here, move along, puppies and rainbows.

This continues to be a scandal that Frankfort wants to ignore.

Note: If you’re a legislator and are just waking up to KRS problems? Here are some quick reads to help you comprehend this simple post:

Really makes you wonder how those $100,000+ in contributions received by Jack Conway impacts his non-action toward KRS.

Tags: Corruption · Flashback · Investigation

3 responses so far ↓

  • 1 Jocko Flocko // Jun 14, 2012 at 12:37 pm

    Do Kentucky graveyards ever whistle back?

  • 2 Chris Tobe // Jun 14, 2012 at 1:37 pm

    I sent the APA an e-mail on 11/9/2010 that informed them that one of Sergeons firms Diamond Edge has been involved in pay for play in New Mexico. I provided the following documentation from Bloomberg

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=atwTqj6OjY7U

    It connects Marvin Rosen of Diamond Edge to the New Mexico Placement Agent Scandal.

    This and dozens of other e-mails I submitted were omitted from the APA report. I have provided copies of these e-mails to the SEC and FBI.

  • 3 Ed Marksberry // Jun 14, 2012 at 3:45 pm

    You can always tell which operatives are in it for the “Gravy Train”, they’re always stand offish, will never agree to anybody else’s good ideas and are always back slapping the big dogs, while ignoring the volunteers.