A hedge-fund backed front group opposing bankruptcy in Puerto Rico is in disarray. Board members of the group, the 60 Plus Association, are suing the group’s president, Amy Frederick, for secretly funneling payments to companies controlled by her husband.
Hedge funds recruited 60 Plus to form a group, Main Street Bondholders, that pretends to represent retirees opposing bankruptcy for the island. The hedge funds have been trying to prevent bankruptcy and promote austerity on the island in order to ensure higher payouts on their debt holdings. They’ve been using a range of legal and advocacy strategies to promote their agenda, which comes at a great cost to Puerto Ricans.
Pillaging Puerto Rico is a bipartisan effort. Though 60 Plus is known as a Koch front group, one of the hedge funds backing its activity on the island has deep Democratic Party ties. BlueMountain Capital, one of the most aggressive hedge fund vultures targeting Puerto Rico, is led by Andrew Feldstein – a major Democratic Party donor and board member of Third Way, the Democratic think tank known for its Wall Street ties and pro-austerity agenda.
The hedge funds may need to look for another advocate in Puerto Rico, which is unfortunate for them – 60 Plus Association seems particularly adept at the kind of dishonest activity they need to make their case in Puerto Rico.
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