Feds Say Adviser Embezzled from Unions

CHICAGO (CN) – The president of AA Capital Partners embezzled $24 million from union pension funds, federal prosecutors say. John Orecchio siphoned $24 million from the $169 million he controlled for five pension funds, according to the criminal information.     Orecchio allegedly embezzled the money from 2002 to 2006, as investment manager at AA Capital. He and AA Capital had control over the unions’ ERISA plans and “full discretion over the investment and re-investment of funds,” prosecutors said.     Orecchio, 43, is accused of taking $24 million for himself, through “capital calls … to pay for personal business and real estate interests with no connection to the ERISA plan investors.”      Orecchio is charged with one count of wire fraud and one count of embezzlement. If convicted, he faces up to 20 years in prison and a $250,000 fine for wire fraud, and 5 years and $250,000 for embezzlement.