Iowa Public Employees’ Retirement System, Des Moines, received $215 million as part of its recovery in the Westridge Capital Management fraud case.
The $22.3 billion system received its money April 21. The system had recovered $35 million in 2009 after authorities closed the firm, according to a system statement.
The amount represents “74% of the investment’s last carried market value and 85% of IPERS’ remaining principal,” according to a separate IPERS statement issued April 1.
The latest amount was part of a proposal by Robb Evans & Associates, the court-appointed receiver in the case for the distribution of $815 million of the assets recovered so far and approved by U.S. District Court Judge George B. Daniels in New York on March 1.
More than 50 other institutional investors are involved in the case. “Additional assets may be recovered and distributed in the future,” the latest IPERS statement said.
IPERS invested nearly $500 million with Westridge, beginning in March 2007. In May 2009, Robb Evans & Associates valued the IPERS investment at $291 million.
Paul Greenwood, who was a Westridge partner, and Deborah Duffy, who was its chief compliance officer, have pleaded guilty to fraud. Steven Walsh, who also was a Westridge partner, is awaiting trial.
Westridge managers were charged with operating a fraudulent scheme misappropriating at least $554 million of institutional investor capital since 1996.
