Madoff Scandal Hits Labor Union Pension Funds

The financial carnage coming out of the Bernard Madoff investment scandal is now spreading from charities and wealthy individuals to labor union pension funds. In recent days, several have fessed up to their members their significant exposure to Madoff's investment scheme, which will result in massive losses to their members.

CNBC has learned that one union, the Carpenters local in Syracuse, N.Y., has lost the majority of the $100 million to $150 million it had in pension money because of its dealings with Madoff, people close to the matter said. The union's money manager, J.P. Jeanneret Associates of Syracuse, didn't return a telephone call for comment.

The Syracuse carpenters local isn't alone. Pat Morin, business manager of Empire State Carpenters Union, is sifting through the wreckage in his own portfolio, which at the end of June had around $800 million in assets under management. Morin says his fund has exposure to Madoff as well, largely the result of consolidation in union pension funds where locals like Syracuse had transferred money to his oversight.

Read the whole story here.

Comments

[strangerinthenight]

Best news today. Smack those Unions leaders, but those members should not pay their membership dues forever.

[jeffp26]

Whomever decided to invest pension money with Madoff has a big problem, and it's called ERISA!!!!!

[lungfish]

Don't worry everyone, if convicted he could get a couple of years in a white collar jail..... buck up!!!

[djgonebad]

This scandal has hit everyone, even the art market. My agent lost many of her cooperate and non-profit clients due to this pyramid scheme. So, it's back to being a "TABLE JOCKEY" for me.

[nomoredead]

NY Union Pension Funds.....he has a target on his forehead now.

[ErnestineBass]

Heh heh...like Gary Larsen's comic deer..."Bummer of a birthmark, Hal."

[TheBlackCat]

LOL I love that one

[MarilynBB]

Trust is tested to the limit with this scandal. And to think Madoff's employees are still going to work as another report stated and are bored with no real work to do. Real visible action needs to be taken by authorities so those who lost all they worked to achieve and all their hope for their future don't take matters places that will cause even more grief.

[thecanadian]

Dear Unions! Make sure these guys are put in Jail and NO BAIL before that! Take every dime from them back for the working people!

[getoffmedz]

Whoops. It may be safer for Madoff in jail?

heh

[Samalabear]

Now this is trickle-down. Time for union workers to start questioning their undying loyalty and faith in their unions, too. Time to ask hard questions and get answers. Know where your money is, period.

[TheBlackCat]

"Know where your money is, period."

Yup, that is some good old fashioned common sense advice