Fort Worth city employees may feel the pinch from Madoff scandal

by PegNews wire

$10 million worth of pension funding may be forfeit - even though the money was reinvested before the scandal broke.

Thanks to the Bernard Madoff scandal (and a judge from New York - git a rope!), Fort Worth city employees may see up to $10 million drained from their pension fund.

That's because the Fort Worth Retirement Fund at one time had money in Madoff-administered investments.

But here's the really crazy part: the Fort Worth fund administrators pulled their initial $7.5 million investment - along with $2.5 million in profits - out of Madoff hedge funds back in July of 2008, long before the terms "Ponzi scheme" and "$50 billion" got all blended up in the national media fan. Nevertheless, a bankruptcy judge in New York thinks they should bear a share of the burden being placed on all who made investments in the Madoff funds; that adjudicator proposes that the Fort Worth Fund should fork over their money, pending equal redistribution to all aggrieved parties.

posted by JM