NEA of New Mexico: ERB and SIC Burned by Madoff

From the Santa Fe New Mexican - New Mexico's main teachers union says a Texas investment firm's connections with Bernie Madoff led to $25 million in losses from state investments and a teachers pension fund. The National Education Association of New Mexico accuses Austin Capital Management and related companies not only of failing to exercise due diligence, but also of maintaining personal and business connections to the Ponzi scam artist. "A key purpose of due diligence — and therefore a critical reason to hire a firm like Austin Capital — is to detect and avoid fraud," the complaint says. Austin Capital has ceased operations in Austin, Texas. Geoffrey Ritts of the Jones Day firm of Cleveland, which represents Austin Capital's Ohio-based parent company, KeyCorp, declined comment on the allegations. Read here:

NEA of New Mexico: ERB and SIC Burned by Madoff