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Federal prosecutors probe pension fund investments
Associated Press
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Published: 5/31/2009 12:01 AM

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A federal grand jury in Chicago has issued subpoenas to several city pension fund officials in an attempt to determine how they decided to invest with a real estate company co-owned by Mayor Richard M. Daley's nephew, Robert Vanecko.

According to documents made public Friday, U.S. Atty. Patrick Fitzgerald's office demanded Wednesday that pension fund officials turn over records of dealings with DV Urban Realty, partially owned by Vanecko.

Several city employee pension funds agreed in 2006 to invest $68 million in DV Urban. Chicago Inspector General David Hoffman, launched an investigation in March, but fund officials refused to comply with his subpoenas.

Hoffman said Friday he then brought the case to the attention of federal prosecutors, who agreed to enter into a joint investigation with his office.