Pittsburgh's CMU recoups $40M in alleged swindle

AP News
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Posted: Apr 25, 2011 11:27 AM
Pittsburgh's CMU recoups $40M in alleged swindle

Carnegie Mellon University is getting back $40 million, or about 83 percent of what it lost in an alleged investment swindle that targeted university endowments and other nonprofits.

A federal court judge in New York last month approved a plan to repay $814 million to 24 victims, roughly 85 percent of what was lost. The payouts were to begin Friday and CMU says on its website Monday that it is getting back $40 million of $49 million invested in the Westridge Capital Management. The school says it is "aggressively" pursuing the rest of the money it lost.

The University of Pittsburgh was also victimized, having invested about $65 million. A Pitt spokesman did not immediately return a call for comment about how much that school could receive under the court-ordered plan.