Corker defends venture dealings
2006-10-11
Source: Knoxville News Sentinel
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rss feedAs a private investor, Bob Corker lost more than $1 million in a speculative Internet venture he shared with Delta Capital Management, a Memphis investment firm.
Undeterred, Corker courted Delta when he became Chattanooga's mayor, opening a door that allowed the firm to get $1 million in Chattanooga city employee pension funds in 2004 to invest in startup companies.
The pension investment, while still in its early stages, is down 12 percent, according to a June 30 performance report.
Corker, the Republican nominee for U.S. Senate, said he played no role in awarding pension funds to Delta and wasn't even present for the January 2004 pension board vote approving the investment.
Yet, City Hall e-mail messages show Corker met frequently with Delta, went golfing with its general manager, and encouraged the firm's quest for a share of public pension funds.
His enthusiasm never waned despite a negative report on Delta from the city's pension investment consultant and, later, an FBI probe of Delta's receipt of public pension funds in Memphis under former Shelby County mayor Jim Rout. That investigation netted grand jury appearances for at least five past and present county government officials but nothing else
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