Iowa Public Employees Retirement System, Des Moines, has recovered $35 million of the $339 million the system invested with Westridge Capital Management, a firm named in federal fraud charges against two investment brokers, according to a statement from the pension fund.
The statement did not elaborate on how the money was recovered.
Officials at the $18 billion system expect to file a claim for the return of the remaining $304 million after Robb Evans & Associates, appointed by the U.S. District Court in New York as Westridges receiver, files its report, which is due by April 27.
The receiver expects a shortfall between available assets and claims (of Westridges former clients) that may be filed against the assets, the statement said. How much the shortfall will be and what part, if any, of the shortfall may be allocated to IPERS are unknown.
The receiver has liquidated the Westridge investments, the statement said.
Stephen Walsh and Paul Greenwood, who were shareholders of Westridge, are charged in a civil complaint filed by the SEC with conspiracy, securities fraud and wire fraud for allegedly misappropriating as much as $554 million.
Julie Economaki, Iowa PERS spokeswoman, couldnt be reached for comment.
The law firm of Ice Miller is representing Iowa PERS.