Iowa State Pension Hit for $339M in WG Trading Fraud

February 27, 2009 ( - The state of Iowa Public Employees' Retirement System (IPERS) had placed $339 million with two money managers that now stand accused of investment fraud.

A Des Moines Register news story said the money was invested with WG Trading Co. LP of Greenwich, Connecticut, and Westridge Capital Management Inc., based in Santa Barbara, California.

Two men identified by authorities as the owners of the firms, Paul Greenwood, 61, of North Salem, New York, and Stephen Walsh, 64, of Sands Point, New York, were arrested this week on charges of conspiracy, securities fraud and wire fraud (See  Money Manager Fraud Snares Public Pensions )

According to the Register, IPERS reported that its $339 million was among the assets frozen by the Chicago-based National Futures Association after Greenwood and Walsh’s trading privileges had been suspended. The futures group had been trying to audit WG Trading, the Register said.

The IPERS board has hired the Indianapolis law firm of Ice Miller LLP to help recover the funds, IPERS announced.