As a private investor, Bob Corker lost more than $1 million in a speculative Internet venture he shared with Delta Capital Management, a Memphis investment firm.

Undeterred, Corker courted Delta when he became Chattanooga's mayor, opening a door that allowed the firm to get $1 million in Chattanooga city employee pension funds in 2004 to invest in startup companies.

The pension investment, while still in its early stages, is down 12 percent, according to a June 30 performance report.

As usual, Corker has been caught lying about the whole mess...

Corker, the Republican nominee for U.S. Senate, said he played no role in awarding pension funds to Delta and wasn't even present for the January 2004 pension board vote approving the investment.

Yet, City Hall e-mail messages show Corker met frequently with Delta, went golfing with its general manager, and encouraged the firm's quest for a share of public pension funds.

When it comes to cashing in on his public office, nothing will stand in Corker's way...

His [Corker's] enthusiasm never waned despite a negative report on Delta from the city's pension investment consultant and, later, an FBI probe of Delta's receipt of public pension funds in Memphis.

Corker's excuse?  (I LOVE THIS EXCUSE!)  He says he was too busy shirking his responsibilities as mayor to be profiting from them!!!

As Chattanooga mayor, Corker was a voting member of the pension board with power to appoint the others.
...
"I never went to any of the meetings to make the (pension) allocations, nor did I try to influence people in that regard," said Corker.

You're a voting member with the power to appoint others (that makes you pretty damn important to the board!) and you never bothered to show up OR EVEN TRY TO PARTICIPATE IN ANY OF THE DISCUSSIONS???

Bob, you're either corrupt or you just plain suck.

The Commercial Appeal article goes to explain how Corker got massacred in his previous business dealings with these guys...

"Freeliant was an unmitigated failure," [Corker's former business partner Darren] Metz said last week. "Delta lost the $2 million they put in in the first place, plus another million. Plus, they lost tremendous credibility with all their investors, because all the investors took a bath, too."

They "lost tremendous credibility" with everyone except Bob Corker, who still enthusiastically recommended these guys to run the city's employee pension plan.  Losing a million here and there is no big deal to Corker, but I'm sure the 12% drop in their pension's value means a lot to city employees hoping to retire soon.

Here's more on how Corker shepherded the pension deal to benefit his buddies...

In an Aug. 7, 2003, e-mail to Corker's finance director, David Eichenthal, [Corker's business partner and buddy Don] Mundie said Delta had decided to open aChattanooga office. "I look forward to having the Mayor's arm around my shoulder introducing us as Chattanooga's newest venture capital firm," Mundie wrote.

Forwarding the e-mail to Corker, Eichenthal said he had "good news" from Mundie, writing: "I am trying to get them on agenda for September at Pension Board." As Mundie explained in a later e-mail, he wanted a small investment of pension funds "to show support for Delta's efforts" to bring risk capital to the city.

"Delta Capital has approached both the Mayor and myself about possible City Pension Fund interest in investment in (a new fund called) Delta Venture Partners II," Eichenthal wrote to the city's pension investment consultant. "Both the Mayor and I were impressed by their presentation."

Note:  Corker was informed and explicitly endorsed the plan.  

Eichenthal got a chilly reception from Chattanooga's pension plan consultant.

"I am very familiar with Delta Capital," Robert Longfield, of Consulting Services Group, wrote back in an Aug. 26, 2003, e-mail. He said two of his clients - Shelby County government and Memphis Light, Gas & Water - had 90 percent of the assets in Delta Venture Partners I, and it wasn't performing well.

Longfield's direct quote to the Chattanooga's pension board was: "We do not recommend further VC (venture capital) allocations at this time."  But the mayor's cronies were not going to be thwarted...

Through the fall, Mundie persisted in his pursuit of the pension funds, asking Corker in an Oct. 21, 2003, e-mail, "if you are still supportive of Delta getting a small allocation ($1MM) to its fund from the Chattanooga Pension Fund to jumpstart our East Tennessee strategy?"

Obviously, the mayor won the battle - and the employees of Chattanooga are suffering for it.