NM Union Sues Over Madoff Ties
New Mexico – New Mexico's main teachers union is suing a Texas investment firm, saying its connections with convicted Wall Street swindler Bernie Madoff led to $25 million in losses from state investments and a teachers pension fund.
The National Education Association of New Mexico accuses Austin Capital Management of failing to exercise due diligence.
Attorney Geoffrey Ritts, representing Austin Capital's Ohio-based parent company, KeyCorp, declined comment.
The lawsuit says Austin Capital began investing in a hedge fund managed by Madoff in 1997, and by 2008, 7.5 percent of a main fund was invested with him.
After Madoff's arrest in December 2008, the complaint says Austin Capital learned it had lost about $186 million including $10 million from the New Mexico Educational Retirement Board and $15 million from the State Investment Council.
Information from: The Santa Fe New Mexican, http://www.sfnewmexican.com
Copyright 2010 The Associated Press.