Thursday, December 27, 2007

STRS involvement in investment scams? (No)

Dennis Leone to John Curry, December 26, 2007
Subject: Fwd: RE: I wonder if STRS invested in any of these scams?
John -- Here is the response (below) that I received from Steve Mitchell regarding the "scam" article you sent me. [See article below.]
Thank you for bringing this stuff to my attention. I think it is important for me to pass these types of questions on to the STRS staff.
Dennis Leone
From Steve Mitchell, December 26, 2007
Subject: RE: I wonder if STRS invested in any of these scams?
I previously had not seen this article; however, I believe the Columbus Dispatch reported over a year ago that this type of scheme was going around the Central Ohio area. STRS Ohio does not have any investments in the companies mentioned in the Akron Beacon Journal article. Also to the best of our knowledge, we do not hold any mortgage-backed bonds or securities that have these types of mortgages in the pools collateralizing our bonds or securities.

From John Curry, December 21, 2007
Pension-fund investment

"Attorney General Marc Dann told reporters that the scheme even touches on some state employee pension funds. He said the state is looking at bringing a civil case on behalf of the funds, which invested in companies that had purchased investment bonds connected to the fraud scheme.

Dann said the indictments and lawsuits will continue across the state, with hundreds being charged or sued in related and unrelated cases."

Charges called the first wave in fraud probe
Akron Beacon Journal, December 21, 2007

17 people, two Akron companies face 147 counts. More action expected across Ohio in investigation of mortgage, securities scams that raked in millions

By Phil Trexler and Rick Armon
Beacon Journal staff writers

It was an extensive two-year investigation into Akron-area mortgage fraud — about 800,000 pages of documents and thousands of manpower hours costing taxpayers millions.

And more is expected.

Read the rest of the article here.......
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