Business: Fund Under the Gun

Imagine a vast investment trust, say $1.5 billion or so, that each year takes in hundreds of millions of dollars in small, but regular, tax-deductible cash contributions. Fantasize further that the trustees, with impunity, sink the money into anything they like—the pet projects of some dear friends, for example —while at the same time cutting out of the kitty many of the fund's supposed beneficiaries. Now let imagination truly soar: the trust's investment income is all taxfree.

Such a gravy train actually exists. It is called the Central States, Southeast and Southwest Areas Pension...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!