FORT LAUDERDALE, Fla. - The president of the CRA Qualified Investment Fund and CRA Fund Advisors has resigned amid accusations that he engaged in fraud at a previous company.
Todd J. Cohen stepped down on April 22, one day after the Securities and Exchange Commission filed suit in the U.S. District Court for the Southern District in New York against him and two former colleagues. The civil action accuses them of taking part in a kickback scheme at Suncoast Capital Group Ltd. of Fort Lauderdale, where Mr. Cohen worked from 1993 to 2000.
Mr. Cohen, however, has not resigned from CRA Fund Advisors' board, nor has David A. Swick, another former Suncoast Capital employee charged in the suit.
Established in 1999, the CRA Qualified Investment Fund has invested nearly $330 million in bonds that encourage development in low- and moderate-income areas. Investors include banks, insurance companies, foundations, charities, and faith-based organizations. Banks that invest in the fund, including Washington Mutual Inc. and Citigroup Inc., receive Community Reinvestment Act credit.
Neil Solomon, the chief financial officer and chief operating officer of Fort Lauderdale-based CRA Fund Advisors, the company that oversees the investment fund, has taken over both president roles.
"At the fund we all take on a lot of responsibilities, and now I am increasing my supervisory ability, but we will continue to move forward exactly as we have, and I looking forward to directing the ship," Mr. Solomon said.
However, he also said that Mr. Cohen could return at some point, depending on the outcome of the suit.
Before joining CRA Fund Advisors in 2000, Mr. Cohen was the president of Suncoast Capital, a regional broker-dealer firm. The suit accuses him of knowingly encouraging another employee there to give gifts and kickbacks in exchange for favorable trades from New York Life Insurance Co. Inc., and of "recklessly approving" fraudulent prices on Suncoast trades in 1998 and 1999.
The suit seeks punitive damages and remuneration of proceeds from the alleged scheme, though no specific figure was requested.
