Pension Plan Advances State Claims Against Foreign Brokerage

A pension plan trustee may proceed with state law claims against a foreign brokerage it says embezzled $70 million from the plan’s account, a federal court ruled.

The trustee for Bluegrass Retirement Group Trust said MCML Ltd., formerly known as ED&F Man Capital Markets, of exploiting the beneficial tax status that US pension plans receive in various European countries as part of a multibillion-dollar international tax scheme known as cum-ex. Under the scheme, ED&F allegedly doctored trading ledgers showing dividend payments to Bluegrass, while also seeking refunds from European tax agencies for withholdings on those dividends.

Trustee Bernard Tew brought ...