More than $200 million in IPERS money recovered - KWWL - Eastern Iowa Breaking News, Weather, Closings

More than $200 million in IPERS money recovered


Attorney General Tom Miller announced that more than $200 million in IPERS money has been recovered from the Westridge Capital Management fraud case.

A court appointed receiver transferred $215,226,105.10 to the State of Iowa on Thursday.

Two principals of WG Trading Company and Westridge Capital Management were indicted in federal court in 2009 and charged with misappropriating institutional investor capital.  One pleaded guilty and is awaiting sentencing, the other is awaiting trial.

The Iowa Public Employees Retirement System (IPERS) made investments in Westridge in 2007 and 2008. They terminated the investment contract in February of 2009.

The recovered $215 million is approximately 85 percent of the principal investment that was made.

"This is a significant portion of IPERS' investment," Attorney General Tom Miller said in a written statement. "Considering the scope of this alleged investment scheme, it's good news that we were successful in recovering this amount."

Robb Evans & Associates, of Sun Valley, California, was appointed by U.S. District Judge George Daniels, of the Southern District of New York, to collect and distribute the $815 million of recovered assets to dozens of institutional investors, including IPERS.

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