The McClatchy Co. said today its pension plan expects to lose about $32 million in a fraudulent investment scheme that has snared others, including Sacramento County.
In a Securities and Exchange Commission filing, The Bee's parent said the loss to the pension plan is tied to a fraudulent scheme uncovered last February. Two men, Paul Greenwood and Stephen Walsh, were arrested by the FBII in February in connection with a firm called Westridge Capital Management.
Sacramento-based McClatchy said it pegged the potential loss at $77.8 million in an October filing with the U.S. Department of Labor, but more recent information suggests the "loss to be closer to $32 million."
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From losing $77 million to only $32 million in less than 2 months is a good thing. I wonder what has happened to make the gap close so much in such a short period of time?
It's a miracle!
But there is also a time value of money aspect to consider if it takes, say, 4 years to get that $32m. back. Depending on your assumptions, that could be worth millions.
The issue is not a 77 or 32 million dollar loss. The issue is why the hell did MNI invest in a fraudulent company and who made the decision.
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