National

McClatchy pension loses $32 million to investment scheme

The McClatchy Co. said today its pension plan expects to lose about $32 million in a fraudulent investment scheme that has snared others, including Sacramento County.

In a Securities and Exchange Commission filing, The Bee's parent said the loss to the pension plan is tied to a fraudulent scheme uncovered last February. Two men, Paul Greenwood and Stephen Walsh, were arrested by the FBI in February in connection with a firm called Westridge Capital Management.

Sacramento-based McClatchy said it pegged the potential loss at $77.8 million in an October filing with the U.S. Department of Labor, but more recent information suggests the "loss to be closer to $32 million."

The losses "will not jeopardize the overall health of our pension plan," the company said. The plan's assets totaled $970.5 million as of Sept. 30. The fund earned 22 percent returns the first nine months of the year.

Read the complete story at sacbee.com

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