April 11, 2017 Kscope

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UAB’S OFFICIAL STUDENT NEWSPAPER

VOLUME 57, ISSUE 12

New alliance ushers in revitalization

From the ice of the civic center

Five Points South, a former cultural hub, appoints organization to bring back the spark that once ruled downtown. Read more on Page 2.

UAB Hockey Club reflects on their first year following a 6-7 season and where they see the sport progressing at UAB. Read more on Page 6.

The

Kaleidoscope STATE

BENTLEY RESIGNS

PHOTO BY JULIE BENNETT/JBENNETT@AL.COM FOR AL.COM Gov. Robert Bentley leaves the Capitol Monday, April 10, in Montgomery.

Kay Ivey sworn in as 54th, second female governor of Alabama Wallace Golding Community Editor After seven years, the bells of justice are ringing loud and clear throughout Alabama. Seven years shrouded in alleged nepotism and other not-socunning cover-ups will be how former governor Robert Bentley will be enshrined in the annals of history.

Bentley resigned April 10 fol- Rebekah Caldwell Mason. lowing a damning report Bentley was booked by the Alabama House into the Montgomery Judiciary Committee’s County Jail in the afterspecial counsel, Jack Sharnoon of April 10 after man, a Birmingham-based pleading guilty to one attorney, complete with count of failing to file a more than 300 of pages of major contribution report testimony, hours of audio and one count of knowIvey and hundreds of text mesingly converting camsages between Bentley and his paign contributions to personal former senior political advisor, use. As part of the deal, Bentley

BIRMINGHAM WATER WORKS BOARD

must reimburse campaign funds to the state of more than $8,000 within the next week and totaling $36,000 throughout the coming months. He will serve 12 months of unsupervised probation and can never run for public office again. Following his plea, Bentley returned to the statehouse where

See ALABAMA, Page 9

PEPPER PLACE

Flushing out the truth Spicing up the Pension scandals, billing issues neighborhood challenge image of organization Wallace Golding Community Editor Since February, the Birmingham Water Works has taken center stage in the theatres of litigation and alleged corruption, complete with $4.3 million in pension funds lost in a Ponzi-like scheme and customers pointing to unethical billing practices. In August 2014, the BWW’s investment managers agreed to invest an undisclosed amount of funds in an affiliate of the Wakpamni District of the Oglala Sioux Nation, whose members reside in one of the poorest regions of the country, the Pine Ridge Reserve of South Dakota, in the form of a limited recourse bond. A limited recourse means the creditor

has limited claims on the loan in the event of default. “[The bond] did not follow the Investment Policy Statement,” Mac Underwood, the BWW’s general manager, said. “This statement established guidelines for the investment of pension funds, one of which states all investments must be investment grade or higher.” Underwood mentioned that the investment managers that made the decision to partake in this bond no longer work with the BWW. The BWW’s portion was only a small part of a larger scheme to defraud nearly $40 million of other agency’s pension plans through the bonds that have been labeled by the Securities and

Exchange Commission as a “sham.” According to filings in a New York federal court, Jason Galanis, a Los Angeles-based venture capitalist, persuaded the Oglala Sioux to issue the bond in March 2014, only five months before the BWW’s investment. Galanis then purchased Atlantic Asset Management, which then purchased Hughes Asset Management, which controlled nearly 30 percent of the BWW’s pension investments. Galanis plead guilty to securities fraud in February and will spend 11 years in prison, but the sentencing was for a different scheme of a similar structure that lasted between 2009 and 2011. Complaints have been filed, but no indictment has been made involving the defrauding of the BWW’s pension.

See BOARD, Page 4

Vendors return for community ‘grocery store’ Tamara Imam Branding and Outreach Manager

N

estled in the middle of a “food desert,” as downtown Birmingham is often called, sits a market teeming with fresh, locally grown produce brought from small farmers all across the state. When Cathy Sloss Jones, the owner of Sloss Real Estate, founded The Market at Pepper Place in 2000 with other high-profile members of the community, she set her sights on saving the Alabama farmer.

But while the farmer has been the priority over the last 17 years, according to Hannah Beasley, assistant market manager, the goal of the market has also been helping bolster small businesses and being the community’s “weekly market grocery story.” “While our focus is the farmers, we want people to have a well-rounded experience of Alabama companies and products,” Beasley said. Pepper Place opened its annual outdoor market Saturday, April 8, and amongst some of the staple, yearly vendors, such as Piper and Leaf and Dak’s Spices, were many first-year vendors. Beasley said that aside from the opening of

See MARKET, Page 9

INSIDE CAMPUS

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COMMUNITY

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SPORTS

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OPINION

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