Lawsuit accuses union adviser of risky investments - 13 WTHR Indianapolis

Lawsuit accuses union adviser of risky investments

Updated:

Indianapolis - Indiana securities officials have sued a financial adviser they say steered the state teachers union's insurance trust into risky investments.

A message seeking comment was left Wednesday for David Karandos, who has advised the trust while working for investment companies UBS and Morgan Stanley.

The complaint accuses Karandos of "unethical, dishonest and deceptive practices" and alleges 13 violations of the Indiana Securities Act. It says Karandos advised officials to invest in high-risk funds that gave him large upfront commissions.

The handling of the money intended for health and disability insurance already was the subject of at least three lawsuits.

Indiana State Teachers Association spokesman Mark Shoup declines comment.

(Copyright © 2010 The Associated Press. All rights reserved. This story may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.)

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