A former McClatchy employee has forwarded some information about a serious issue involving the company's pension fund that has been kept quiet.
The information was tucked away inside some retirement information the company recently sent out.
"Did the plan have a loss, whether or not reimbursed by the plan's fidelity bond, that was caused by fraud or dishonesty?"
Uh, McClatchy, that's no way to treat people with vested retirement.
A little research shows the two owners of Westridge -- Paul Greenwood and Stephen Walsh -- have been charged with defrauding more than two dozen institutional investors out of $667 million. The two are facing criminal charges in New York. Documents filed with the SEC claim Greenwood and Walsh dipped into the funds to buy lavish homes, a horse farm, cars, and exclusive collectibles such as Steiff Teddy Bears, which cost as much as $80,000.
I have no details yet on McClatchy's involvement. But the $77 million in fraud would be a sizable chunk of Westridge's fraud -- well over 10 percent.
And what is the status on recovering the funds?
Update: McClatchy has addressed the Westridge fraud; see the latest developments here.