The groups responsible for paying pensions to retired State Police and New Orleans city employees may have lost nearly $400,000 each to Bernard Madoff, the notorious New York financier being prosecuted for allegedly masterminding a $50 billion Ponzi scheme.
Officials with the Louisiana State Police Retirement System and New Orleans City Employees' Retirement System say they had no idea their funds were invested with Madoff. The systems had entrusted the money to "funds of funds," or firms hired to find small hedge funds that would otherwise be difficult to access. Those companies then invested with Madoff.
Officials with the Louisiana State Employees' Retirement System, Teachers' Retirement System of Louisiana and New Orleans Firefighters' Pension and Relief Fund said they had no investments with Madoff.