A Detroit-based investment advisor agreed to give back $3.1 million that U.S. regulators allege he stole from a pension fund for the city's police and firefighters, the U.S. Securities and Exchange Commission said on Monday.
Chauncey Mayfield, who is the head of MayfieldGentry Realty Advisors, took the money so he could buy two strip malls in California, the SEC said.
He and his firm agreed to settle the SEC's civil charges without admitting or denying them.
The city of Detroit faces a possible bankruptcy as the state-appointed emergency financial manager Kevyn Orr is meeting with creditors this week.
Mayfield pleaded guilty in February in a parallel criminal case to conspiring with former Detroit Treasurer Jeffrey Beasley to pay him bribes in exchange for more business from the pension fund and is scheduled to be sentenced on July 23.
He faces up to five years in prison, plus a $250,000 criminal fine.