Wednesday, December 2, 2009

SacBee: "McClatchy expects its pension plan to lose $32 million due to Westridge fraud"

The Sacramento Bee responded Wednesday to new Westridge fraud revelations by publishing an item on the Bee's web site claiming the total lost to fraud in the company's pension plan is approximately $32 million.

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."

Click here to see the full Bee story.




Anonymous said...

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?

Anonymous said...

It's a miracle!

JAT said...

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.

Anonymous said...

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.