NEA Sues Over Money Lost in Madoff Scam
An attorney for a New Mexico teachers union says two state investment agencies would not have lost tens of millions of dollars in the Bernard Madoff scandal had a Texas-based investment firm done its job.
The National Education Association of New Mexico has sued Austin Capital Management on behalf of the state Educational Retirement Board and the State Investment Council, claiming the firm violated its fiduciary duty and was negligent.
The lawsuit, unsealed Tuesday by a state district court in Santa Fe, claims Austin Capital failed to perform due diligence on its investments with Madoff and missed red flags that had caught the attention of other firms. For example, investment returns reported by Madoff were consistent despite a volatile market, and trading activity...
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