Iowa pension fund assets frozen

[seemslikeadream]

http://www.chicagotribune.com/news/chi-ap-ia-ipers-frozenasset,0,7938175.story

DES MOINES, Iowa - Iowa's largest public employee pension fund says $339 million in assets have been frozen pending a federal investigation into an investment broker-dealer it had ties to.

The Iowa Public Employees Retirement System said the move will not affect monthly benefits paid to its 85,000 pension recipients.

The system also said it has terminated its investment contract with Westridge Capital Management of Santa Barbara, Calif.

The National Futures Association, which regulates its own members, has suspended the trading capabilities of two individuals who are principals in both WG Trading and Westridge Capital Management.

[petersjo02]

1. That's pretty close to home.

Besides SS, my husband gets monthly payments from two pension funds, one of which is IPERS. They're always bragging, in their quarterly newsletter, how sound the fund is. Time will tell.

[FarCenter]

2. Pitt, Carnegie Mellon suing investment manager

They want $114 million back after questions were raised by audit

Saturday, February 21, 2009

By Len Boselovic and Jonathan D. Silver, Pittsburgh Post-Gazette

The University of Pittsburgh and Carnegie Mellon University yesterday filed suit against Westridge Capital Management and its operators, seeking the immediate return of more than $114 million they invested. They also asked a federal judge to appoint a receiver to oversee the investment manager.

The lawsuit, filed in U.S. District Court, comes after the two universities said they were unable to collect the money from Westridge or get documentation regarding the status of their money from Westridge's principal partners, Paul Greenwood and Stephen Walsh.

Mr. Greenwood and Mr. Walsh were suspended last week by the National Futures Association, an industry regulatory agency, after they failed to cooperate with an audit the association launched on Feb. 5.

Pitt and CMU have also notified the Securities and Exchange Commission and the Commodities Futures Trading Commission, urging them to investigate Westridge and its affiliated firms who invested their money. Both agencies declined to confirm or deny whether investigations are under way.

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http://www.post-gazette.com/pg/09052/950750-298.stm?cmpid=newspanel3

Why would anyone invest with a financial firm in southern California?