Ex-Detroit Lion [negro], money manager stole $3M from Detroit, Pontiac pensions, U.S. says

By Jennnifer Dixon
Free Press Staff Writer

The U.S. Securities and Exchange Commission brought civil fraud charges today against a private equity firm, an investment advisor and his friend, accusing them of stealing more than $3 million from public pension plans in Detroit and Pontiac.

The lawsuit, filed in U.S. District Court in Detroit, names Roy Dixon Jr. and Onyx Capital Advisers, who were the subjects of Free Press reports last year that raised questions about whether they misrepresented a principal in the firm, among other things. The third defendant is Michael A. Farr, a former Detroit Lions receiver and the son of former Lion and metro Detroit auto dealer Mel Farr.

Detroit’s two public pension plans – one for police and fire, the other for general city workers – invested a combined $20 million with Onyx. Pontiac’s retirement system agreed to invest another $5 million, but froze its spending at $3.6 million in June 2009.

Dixon did not return calls for comment, and officials from the Detroit and Pontiac pensions could not immediately be reached.

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http://www.freep.com/article/20100422/NEWS01/100422041/1319/Ex-Lion-money-manager-stole-3M-from-Detroit-Pontiac-pensions-U.S.-says