Atlanta financial adviser Larry Gray on Monday resigned his firm’s role as consultant to Atlanta’s largest pension board, just two days before board members expected him to answer questions about why he did not tell them — or regulators — about $425,000 in federal tax liens filed against his Roswell home and the $1 million settlement of a lawsuit that accused him of fraud.
Gray’s lettersays the resignation is “effective immediately.”
“…due to the recent concerns by some board members and negative publicity regarding our relationship, we believe the relationship has become unworkable and is no longer int he best interest of the city of Atlanta General Employees’ Pension Fund or Gray & Company,” the letter says. “We truly believe that all of Gray & Company’s clients should have the same opinion of Gray & Company — one of a knowledgeable and trusted colleague providing the highest quality investment advisory services.”
Gray & Co.’s lack of disclosure to federal and state regulators regarding the tax liens and settlement were first reported last month by The Atlanta Journal-Constitution. That led the general employees board to call a special meeting last week, at which they called for a forensic audit of the $10.4 million the pension system has invested in a fund created and managed by Gray & Co.
The board is expected to consider firms to perform the audit at its regularly-scheduled meeting Wednesday — the same meeting at which they wanted to question Gray about his firm’s lack of disclosure.