Thursday, March 5, 2009
A top official at the San Diego County Employees Retirement Association resigned today. The pension fund’s Chief Investment Officer oversaw a multi-million-dollar investment into stock trading company now being investigated for securities fraud. KPBS reporter Katie Orr has details.
Under David Deutsch’s watch, the pension fund invested $78 million in a hedge fund managed by WG Trading. The founders of that business were arrested and charged with securities and wire fraud. The county’s money might be at risk. During Deutsch’s tenure the pension fund lost $2.5 billion. But Retirement Board Chair Garry Sobeck says the economy has battered a lot of pension funds
"We’re no different than CALPERS, CALSTERS, Texas Teachers, we’re all feeling the same kind of double digit overall devaluation," says Sobeck.
In 2006 Deutsch ran into trouble with another hedge fund that put $175 million in jeopardy. The county recovered most of that money.
Katie Orr, KPBS News