By Andrew Perez of MapLight and David Sirota of Capital & Main, in partnership with the Florida Center for Investigative Reporting, 09/14/2018:
Florida Gov. Rick Scott and his wife have invested at least $18 million in three financial firms managing money for the state’s pension system that Scott oversees — a situation that intertwines the governor’s personal finances with his responsibility for supervising state employees’ retirement savings.
… The terms of Scott’s investments remain undisclosed. The firms’ own corporate documents say they can give certain investors special preferences not afforded to other investors — and experts have in recent years argued that hedge funds, private equity firms, and other “alternative investments” are giving such preferences to elite investors. One former Securities and Exchange Commission attorney told MapLight and Capital & Main that Scott must disclose whether he is being given such preferences.
Florida ethics laws are supposed to prohibit state officials from entering into contractual relationships with companies that do business with their agencies. However, after Scott became governor in 2011, state ethics officials said he and his family members could put their assets into a blind trust to avoid conflicts of interest and still maintain their investments in companies operating in Florida.
… The three firms that have received $325 million worth of Florida pension investments have allowed the Scott family’s blind trusts to simultaneously invest their personal fortunes in these funds. Scott’s investments in the funds did not appear in a 2014 disclosure itemizing his holdings. His campaign did not say when the investments were made.