In the fall of 2021, as part of its regular audit process, the Retirement Plan for CTA Employees discovered that Ayanna Nesbitt, an employee of the Retirement Plan Office, fraudulently withdrew monies from the Plan’s assets without proper authorization.
The Plan terminated Ms. Nesbitt’s employment and recovered a substantial amount of the improperly withdrawn funds. It also reported the wrongdoing to the office of the U.S. Attorney, which investigated, and caused Ms. Nesbitt to be indicted.
Ms. Nesbitt pleaded guilty to committing wire fraud, and on November 7, 2023, she was sentenced to 12 months and 1 day of incarceration. Her sentencing included a period of three years of supervised probation to follow the term of incarceration. While the harm that Ms. Nesbitt caused the Plan and its participants can never be undone, the Plan is satisfied that the government successfully prosecuted this matter, and that Ms. Nesbitt will be forced to pay for her crimes.
In addition to the investigation conducted by the U.S. Attorney, the Plan hired additional outside experts to audit and investigate her activities. These investigations did not uncover any additional fraud. The Retirement Plan has implemented additional controls to ensure that this type of fraudulent activity will not occur in the future.
We would like to reiterate that the Retirement Plan for CTA employees has not and will not deny any benefits to former employees, their families, or their designated beneficiaries because of this improper withdrawal. The fraudulent withdrawals have not had a material impact on the overall funding level of the Plan, and Ms. Nesbitt will be responsible for making restitution for the remainder of the funds owed.
Retirement Plan for Chicago Transit Authority Employees
Chicago Transit Authority Retiree Health Care Trust