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Daley's Nephew Parlaying Pension Cash

Vanecko company charges pension funds for managing properties they own

Monday, Jun 8, 2009 | Updated 7:06 AM CST

Robert Vanecko seems to be managing to make a bunch of money on declining pension investments.

It seems to good to be legal, but so far there is only an investigation into the activities of Mayor Daley's nephew, Robert Vanecko, and Vanecko's partner, Allison S. Davis. There's been no open talk of charges, but the Sun-Times reported last week that a federal grand jury and the city of Chicago's inspector general are looking into how DV Urban Realty got the city pension business.

The two manage $68 million for five city pension funds -- and they're making a lot of money while doing that.

Today's Sun-Times reports that, in addition to the $8-million guaranteed deal the business partners have made with the funds, Davis and Vanecko have invested pension money in eight real estate projects -- which have fallen in value, in part because of the recession.

With the creation of a company -- DV Property Management -- the two now manage three of the eight properties, charging the five city pension funds a total of $353,720 in 2007 and 2008.