Ex-Chicago money manager on the hook for $50 million

DETROIT -- A former Chicago money manager has agreed to pay $50 million to five Detroit-area pension funds after the government accused him of making bad investments and benefiting himself.

John Orecchio apparently doesn't have the money. But the U.S. Labor Department says he's required to file annual financial reports and make payments when he can. The agreement announced Wednesday settles a lawsuit in federal court in Chicago, where AA Capital Partners was based.

The Labor Department says the five pension funds are tied to labor unions and cover more than 60,000 people. They're carpenters, millwrights, engineers and Teamsters.

In federal court in Detroit, Joseph "Roxy" Jewett was charged in May with conspiring with Orecchio to get money from the carpenters' pension fund. Jewett has pleaded not guilty.