Helena-West Helena hopes to band together with other pension clients to pursue litigation against a Little Rock financial adviser.
City officials allege that John Turbeville, vice president of global wealth management with Merrill Lynch, didn't perform promised reporting services that cost the city $300,000 in state turnback funds last year.
"We're in the process of retaining counsel on behalf of our pension board," said Andre Valley, city attorney for Helena-West Helena. "We're talking with other municipalities about taking action against Turbeville and Merrill Lynch."
Turbeville, who has declined comment, also is undergoing scrutiny by the Arkansas Securities Department and the Arkansas Fire & Police Pension Review Board.
David Clark, PRB executive director, expects both state agencies will soon announce their findings.
"I understand that the Securities Department is right on the backside of wrapping up their investigation, but I don't have any details," Clark said. "I'm hoping there will be some closure on this issue."
Securities officials are examining complaints against Turbeville from several pension fund clients regarding unsuitable investment risks and shoddy service.
Dove-tailing with the securities investigation of Turbeville is the PRB's investigation of four Turbeville-managed pension funds, with combined assets of more than $2 million: Bradford Fire, Newport Police, Newport Fire and Helena Police.
Officials are examining whether variable rate annuities sold to the pensions were suitable investments and whether excessive fees are associated with those investments. Three of the four funds also have an inordinate portion of their assets in variable rate annuities.
The PRB staff is still attempting to gather information to determine if the investment fees generated by the annuity agreements exceed the 3 percent of plan assets cap set by Arkansas law. Erika Gee, assistant attorney general, is overseeing the collection effort on behalf of the PRB.
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