Fire and Police Pension Fund loses thousands to fraud
$400,000 invested in Madoff Securities08:58 PM CST on Tuesday, March 3, 2009
It's money that's supposed to benefit police and firefighter retirees. But hundreds of thousands of dollars have ended up in the hands of the man suspected of running the biggest investment scam in history.
Kens 5 has learned that the San Antonio Firemen and Policemen Pension Fund hired Silver Creek Management to invest it's money. Money that ended up in the hands of Madoff Securities. Bernard Madoff is accused of running a $50 billion ponzi scheme.
"Unfortunately Madoff was a fraud and the Pension Fund lost $400,000 in that fraud," said Warren Schott, the Executive Director of the San Antonio Firemen and Policemen Pension fund. "We are going to do everything we can to get it back," he added.
Last month the board voted to stop working with Silver Creek Management.
On top of allegedly losing $400,000 to Madoff, the Pension fund also lost about $600 million from the slumping economy. But Schott says they are in very good shape compared to other public pension plans.
Let me get this straight, We've lost $6.5 million, but we are in good shape??? I don't think so! And the horizon don't look to bright with this bunch in DC. I don't know about all you guys, but I don't have a lot of marketable skills, makes one wonder what we will all do now.
ReplyDeleteI'll be anxiously awaiting to see if anyone can pull a rabbit out of the hat on this one. Good luck to all.
I agree with Robert, good shape as compared to what? Enron?
ReplyDeleteYes we took a hit but the Madoff sceme represented 3/100% of our pension. As for the $600M it represents 25%. It hurt but our pension is still doing great. According to the state pension review board our pension is the second best, second to Austin Fire. Before the recession we had 5 very good years that increased our pension by 60%. We lost 25%. Don't listen to the media. I'm not that great in marketing either but I keep in contact with my investor and keep most of my investments in treasury until the market stabilizes. And it won't until our glorious leaders learn to keep their mouths shut.
ReplyDeleteThe Board just voted to go to the legislature with upgrades to our pension fund. Not one of those items were an emergency. Why are we increasing benefits when the economy,and fund, is taking such big hits? We should be investing conservatively and not giving any additional benefits away until things turn around. If we can take a hit, as with our .1% COLA, then the few that benefits from these extras can just wait.
ReplyDeleteThe ammount we lost in the Madoff sceme is trival and will cost more to retrieve than we lost because you will only realize pennies on the dollar in what is left to collect from. Everyone should be more concerned about the $600 million we lost in the markets downward sprial over the last year. Increasing benefits to the pension during down enocomic times is usually irresponsible however some of the changes proposed are actually beneficial to the fund, ie the dorp back from 4 years to 5 years has a positive effect on the fund.
ReplyDeleteI am annoyed, but not as concerned about the $400K as I am worried about the $600M. Admittedly, I am not very knowledgeable about these things and am frankly worried about whether we could lose our pensions altogether. Does anyone know who the insurer is? Let's hope it isn't AIG.
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