Iowa Public Employees’ Retirement System, Des Moines, could recover almost all of its remaining $253.4 million in principal the system invested with Westridge Capital Management, a firm named in federal fraud charges last year against two investment brokers, said Geoff Greenwood, communications director for Iowa Attorney General Tom Miller.
“The state is expecting to receive the vast majority of that (remaining principal), somewhere in the range of 85% to 90%,” on behalf of the $19.8 billion system, Mr. Greenwood said.
A timetable for the getting the proceeds was not available, Mr. Greenwood said.
U.S. District Court Judge George B. Daniels in New York is overseeing the disposition of the Westridge assets to some 40 investors, including Iowa PERS, Mr. Greenwood said.
In March 2009, the system recovered $35 million of its nearly $500 million investment with Westridge. In May 2009, Robb Evans & Associates, the court-appointed receiver in the case confirmed the IPERS investment value at $291 million. Iowa began investing with Westridge in March 2007.
Iowa PERS officials couldn’t be reached for comment.