According to SEIU, Fraud at GTCR Portfolio Company Raises Concerns for Public Employee Pensions; Lason, Inc. Indicted for Fraud While GTCR Principles Sat on Board of Directors.Business Editors WASHINGTON--(BUSINESS WIRE)--Dec. 19, 2003 Shareholders Lost Millions A leading private equity firm with a history of investing in companies with poor corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. is being taken to task by SEIU SEIU Service Employees International Union SEIU Special Education Intake Unit SEIU Secondary Education Interdisciplinary Unit SEIU Software Engineering Institute Union of an indictment for fraud at one of its portfolio companies. The latest edition of GTCR GTCR Glacier Travel and Crevasse Rescue Watch, a newsletter for investors, details the fraud indictment at Lason, Inc., a document printing, imaging, and storage firm incorporated in Delaware and headquartered in Troy, Michigan Troy is a city in Oakland County of the U.S. state of Michigan. It is a suburb of Detroit. As of the 2000 census, the city had a total population of 80,959, the 12th largest city in Michigan by population. . An indictment for fraud brought in May 2003 by a federal grand jury in Michigan, and civil fraud charges filed on the same day by the SEC, allege To state, recite, assert, or charge the existence of particular facts in a Pleading or an indictment; to make an allegation. allege v. that this rapid growth allowed Lason's executives to fraudulently inflate inflate - deflate the firm's reported revenue, expenses, and earnings from 1997 onward. The indictment alleges that fraudulent managerial behavior occurred at Lason while GTCR principles Bruce Rauner and Joseph Nolan Joseph Nolan (born 1846) was an Irish Nationalist Member of Parliament for North Louth from 1885-92, and for South Louth from 1900-18. Nolan was a native of County Louth. He was originally a schoolteacher, in Ireland and then in Liverpool. served on its board and on key board committees, costing shareholders over $900 million in lost equity. "Any institution contemplating an investment in a GTCR fund should consider the performance of GTCR's principals as public company directors before undertaking such a commitment," said Steve Abrecht, Director of the SEIU Capital Stewardship Program. The report has been posted on a website, www.GTCRWatch.com, which provides investors with detailed information about the corporate governance practices of GTCR Golder Rauner, LLC's companies. The website and newsletter were created by the Service Employees International Union (SEIU), which represents over 700,000 members working in the public sector and 1.5 million members total . The SEIU Capital Stewardship Program works closely with pension fund trustees, administrators, and service providers to endure that our members' retirement savings are invested in a prudent and responsible manner. For more information about GTCR's corporate governance record, visit www.GTCRWatch.com. |
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