The DOL filed suit against trustees of the $106 million Connecticut Plumbers & Pipefitters pension fund, Wallingford, for allegedly losing more than $3 million in overly risky derivatives investments. This is the first derivatives case filed by the DOL.
According to the suit, filed in New Haven federal court yesterday, trustees and broker Steven Hassenmiller failed to properly analyze the investment risks of the 79 collateralized mortgage obligations they purchased.
The DOL wants to remove the trustees from their positions, and permanently bar them from serving any plan governed by federal pension law.
Union officials could not be reached by press time.