JACKSONVILLE, Fla. – A lack of transparency is the biggest problem for the trouble-plagued Police and Fire Pension Board, according to a forensic audit commissioned by the City Council in April.
The auditor, pension expert Ted Siedle of Benchmark Financial Service of Boca Raton, suggested that it might be time to ask the governor and others to investigate problems with the board.
Jacksonville City Council Finance Committee Chairman Bill Gulliford announced the findings of the audit in a news conference Wednesday at City Hall.
The council paid $85,000 for the audit.
READ: Forensic audit of the Police and Fire Pension Fund
Among the many problems listed in the audit was a lack of transparency, which was evident in the fact that the board's records were not made available to Siedle.
The report suggested asking for help from the FBI and the U.S. Securities and Exchange Commission in investigating the board.
It also said the council should subpoena more information from the board.
Siedle said the board failed to provide oversight and made poor investment decisions and that the board and staff might be personally liable for the problems.
The board has been scrutinized for high payments to its director, John Keane, who recently retired but is now a consultant to the board. The board is also under fire for setting up a special pension account for Keane and two other people.
Siedle's report questioned Keane's pension plan, which allows him to take him over $227,000 his first year.
"In this case we found breaches of fiduciary duty and hidden and excessive fees, and we also found potential violations of law," Siedle said. "But until we have the full evidence, we do not know."
What is not known troubles Gulliford.
"We can't make a claim and say somebody did something illegal here," Gulliford said. "We don't know because the evidence isn't there or hasn't been provided."
Mayor Lenny Curry has been critical of the performance of many boards in Jacksonville.
"I am about accountability and making sure -- particularly as it relates to boards -- that they understand their role and transparency with governance," Curry said. "I will look at that, and we will go from there."
Curtis Lee, a citizen activist, has been pushing for information about the board and has been successful in lawsuits against it. He said the city's audit is a start.
"You might call it a corrupt institution or you might call it a scandal-plagued institution," Lee said. "It's been incompetently run. They don't care about costs, wasted millions, and they should. The people who ran the fund for years should pay."
The city's top lawyer said the city has issued subpoenas to the board and its attorney to have compel them to testify before the City Council.
Gulliford said the council hopes to meet with those involved in public and resolve the problems before taking the board to court.
Keane said he is reviewing the audit now and had no comment until after his review is complete.