The Department of Labor reached a global settlement with AA Capital Partners and associated parties to recover an additional $7.8 million for the shuttered private equity manager's Michigan pension clients, according to a news release.
The settlement was approved Tuesday in U.S. District Court in Chicago.
The settlement is in addition to a $50 million consent judgment in 2009 to recover part of the $24.2 million in pension plan assets stolen by John Orecchio, former AA Capital president, according to the news release. Mr. Orecchio is serving a nine-year, four-month sentence after pleading guilty to the theft, including misusing clients' pension funds for renovation of his horse farm and strip club and to purchase a condominium for himself in Las Vegas.
Mr. Orecchio also was convicted of charging pension fund clients unauthorized management fees and imprudently investing pension plan assets.
The $7.8 million will be restored by AA Capital's insurance providers, Indian Harbor Insurance and Federal Insurance.
AA Capital was placed in receivership in 2006.