OLYMPIA, Wash. - An investor has paid the Washington State Investment Board $230,000 to settle a legal and business dispute stemming from problems in the state's $22 billion public pension fund.
Stuart C. Johnston, manager of a group of venture capital partnerships in which the fund has invested $45 million, said he made the payment even although he disputes that he does owe the money.
Mr. Johnson said he wanted to "maintain harmony" with the investment board.
The $230,000 was the investment board's share of a settlement paid to a former employee of Mr. Johnston.
Word of the payment is contained in a report by the state's Legislative Budget Committee.
The report includes reviews of the board's venture capital deals with Mr. Johnston by the state Attorney General's Office and a business consulting firm.
It was prepared in response to a highly critical review of the board in 1992 by the legislative committee.
The board had to devalue several hundred million dollars in investments during a three-year period of restructuring since problems with the pension fund investments surfaced.
At issue was a lawsuit by a former employee of Mr. Johnston against him and the Phoenix venture capital partnerships.
The lawsuit resulted in $900,000 in legal and settlement costs that were then charged by Mr. Johnston to the partnerships.
