As One Dreyfus Director Departs, Another Faces Questions
A new Dreyfus funds independent director with a history of litigation and millions of dollars in judgments against him has resigned from the board, while official records show a longtime director on other Dreyfus boards had nearly $1.5 million in state and federal tax liens filed against her and her husband.
The incidents raise questions regarding how much other directors knew about Richard Rochon’s past before appointing him in February and what kind of ongoing due diligence they conduct on current members.
Rochon, 62, stepped down May 8, according to a May 13 fund filing. His departure came a day after BoardIQ published an article detailing the numerous times he has been sued over allegations of failing to repay both personal and business loans and the nearly $6.4 million in judgments that resulted from those lawsuits.
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Blank Rome partner Thomas Westle was not surprised by Rochon’s resignation.
“Boards of directors of mutual funds need to be pristine," he says. "And unlike maybe, general corporate boards, where there may be some room for interpretation, I think we need as an industry to be totally above board.”
“As One Dreyfus Director Departs, Another Faces Questions,” by Greg Saitz was published in BoardIQ on May 21, 2019.