NEA sues over money lost in Madoff scam
June 25, 2009
ALBUQUERQUE, N.M. (AP) – An attorney for a New Mexico teachers union says two state investment agencies would not have lost tens of millions of dollars in the Bernard Madoff scandal had a Texas-based investment firm done its job.
The National Education Association of New Mexico has sued Austin Capital Management on behalf of the state Educational Retirement Board and the State Investment Council.
The lawsuit claims Austin Capital failed to perform due diligence on its investments with Madoff and missed red flags that caught the attention of other firms.
Attorney John Wertheim says Austin Capital allowed the State Investment Council and the retirement board to lose as much as $25 million in the Madoff scam.
The lawsuit was unsealed this week by a state district court in Santa Fe. It seeks to recover at least three times the damages the investment entities lost.
Comments
Feel free to leave a comment...
and oh, if you want a pic to show with your comment, go get a gravatar!
You must be logged in to post a comment.