Forbes Hits Kentucky Retirement Systems Again

It’s a new year. So, uh, of course Kentucky Retirement Systems is the focus of corruption and nasty retaliation at Forbes.

In 2011, the SEC established a much-heralded whistleblower program.


In August 2010, Mr. Tobe had contacted the SEC upon learning of the existence of placement agents involved in certain KRS investments and related undisclosed fees for the first time. Later, in May 2011, Tobe contacted the Federal Bureau of Investigation regarding the matter. Tobe had reason to believe that multiple violations of law had occurred related to certain investments made by KRS, involving the management of hundreds of millions of dollars in KRS assets and in excess of $14 million in undisclosed placement agent fees.

Consistent with his fiduciary duty as a KRS Board member and prior to contacting the SEC and later the FBI, Tobe informed the KRS Board of his original analysis of the facts regarding these suspect investments and undisclosed fees. When the Board failed to take (in his opinion) appropriate action, he contacted the SEC and FBI, in order to protect the assets of KRS. It is our understanding that the information provided by Tobe to the SEC was not already known to the Commission.

As a result, it is my opinion that Mr. Tobe is a “whistleblower” who may be afforded certain protections under federal and state law.

In response to his whistleblower complaint, the SEC is conducting an investigation into some, or all, of the multiple potential violations of law complained of by Tobe, including, but not necessarily limited to, the payment of approximately $14 million in placement agent fees.


KRS has retaliated against Mr. Tobe by making disparaging statements regarding, among other things, his status as a whistleblower and his motives for contacting the SEC, including publicly stating on its website currently that “Mr. Tobe is not a source of any original information that might qualify him as a “whistleblower.”


I believe it is in the public interest for the Commission to publicly comment on both (a) retaliatory statements made and actions taken by potential defendants and others related to whistleblowers during the period of an SEC investigation; and (b) potentially misleading statements made to the public by potential defendants and others regarding the rules related to the SEC whistleblower program.

Click here to read it all.

Because 2013 is going to be a crazy year for KRS embarrassment.