By Marshall Griffin, KWMU
Jefferson City, MO – Missouri's State Employees' Retirement System has lost around $3.5 million to a massive scam allegedly run by New York investor Bernie Madoff.
State Treasurer Clint Zweifel, who took office earlier this week, says he was informed Thursday that the investment firm Silver Creek Capital Management had fed money from the retirement fund, also known as MOSERS, to Madoff.
He also says the state should consider legal action.
"There has to be accountability when taxpayers' assets are put at risk...while we do that, there needs to be a comprehensive review of all current investments to make sure there isn't any additional Madoff exposure," Zweifel said.
MOSERS oversees retirement, life insurance and other benefits for most state employees, including lawmakers, judges and other elected officials.
Zweifel has sent a letter to the MOSERS board suggesting they reevaluate their relationship with Silver Creek Capital.
"One of the concerns I have is I think we've got to really look into having policies that promote real openness and transparency of MOSERS investments, and making sure that we are willing to talk about at least some of those in open session, especially when we consider that ultimately it's taxpayers' assets that are at risk," Zweifel said.