The city has begun legal proceedings against CBL and Associates Properties to recover money the Clearwater Employee's Pension Plan lost as a result of the company's alleged securities fraud, the Tampa Bay (Fla.) Times reported on Saturday. The Tennessee-based real estate trust is under investigation by the FBI and the Securities Exchange Commission for allegations officials inflated financial information when applying for loans to acquire property. Federal authorities have also asked questions regarding the company's relationship with Sen. Bob Corker (R-Tenn.), who has made millions in profit trading CBL stock, the Wall Street Journal reported in May. Clearwater Finance Director Jay Ravens said the pension fund lost $600,000 after CBL stock value declined amid the allegations.
