State retirement fund loses $3.5M in Madoff scheme

Missouri's retirement fund has lost an estimated $3.5 million in Bernie Madoff's alleged $50 billion Ponzi scheme, state Treasurer Clint Zweifel said today.

Missouri State Employees' Retirement System, or MOSERS, the retirement agency for state employees, placed money with Seattle-based asset management firm Silver Creek Capital Management, which fed money to Madoff, according to a news release.

"It is unfortunate that anyone was affected by Madoff," Zweifel said in the release. "It is crucial we take immediate action to see that this does not happen again."

Zweifel is urging the MOSERS board and staff to:

• Thoroughly examine the relationship between MOSERS and Silver Creek;

• Develop policies to increase transparency of MOSERS' investments;

• Improve disclosures so MOSERS board members know how investments are performing;

• Increase due diligence on asset managers by MOSERS to increase accountability;

• Consider legal action for plan participants who have been harmed by the Madoff scheme; and

• Conduct a comprehensive review of all MOSERS investments to make sure there isn't additional Madoff exposure.[[In-content Ad]]