US alleges kickback scheme in Mich. pension fund

By: The Associated Press
By: The Associated Press

Federal authorities say they have evidence of a kickback scheme in a Michigan pension fund's investment in a Mississippi casino.

The disclosure is in a document filed this week in federal court in Detroit.

Authorities want to seize a Las Vegas house purchased by a man who was hired as a "casino consultant," after the Carpenters Pension Trust Fund-Detroit invested in the project.

The U.S. attorney's office says it all began in 2002 or 2003 when the pension fund gave money to AA Capital Partners. The Chicago firm in turn invested some in the construction of the Hard Rock Hotel and Casino in Mississippi.

Authorities say an official with the pension fund directed AA Capital to hire Joseph R. Jewett as a consultant. They say Jewett had an agreement to share his income with someone identified only as "Executive 1."

There's no mention in court documents of how much money may have changed hands. No criminal charges have been filed, but authorities want Jewett's Las Vegas house.

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