Mon August 11, 2014
Investment Firm Defends Work for New Castle County
NEW CASTLE, Del. (AP) - An investment firm that managed millions of dollars in New Castle County funds is defending its work after a county administrator said it charged excessive fees.
At issue is a decision by the county's chief administrative officer, David Grimaldi, to transfer $92 million in county reserve funds to United Bank of Switzerland back in 2012.
Last month the county auditor questioned the transfer and said he was reviewing whether the transfer should have been put up for bid.
Grimaldi says he made the transfer because the Swiss bank has saved the county about $400,000 in fees and put the money in less risky investments.
But The Wilmington News Journal reports that one of the old investment firms, West Capital Management, says Grimaldi is overstating how much it charged.