Detroit pension funds lost $125M on real estate investments

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An audit of Detroit’s pension funds “lacked any explosive findings” but did conclude that the funds lost more than $125 million on real estate deals.

A spokesman for pension funds for Detroit police officers and firefighters said the losses were due to the recession’s impact on the real estate market. The funds have invested in projects that helped revitalize downtown, he said.

Real estate investments are a “major part of a federal bribery and fraud case against six former pension officials and businessmen,” the Detroit News reported. Source: detroitnews.com