Jobsanger is reporting on the controversy of the state teacher's retirement fund investing so much of its money in the company of strident voucher proponent James Leininger, and losing it. Texas teachers are covered under the Texas government employees retirement system.
It seems on the Board of Directors is a paid lobbyist of Mr. Leininger's company who is believed to have influenced the investments. The purchases may violate the safety guidelines of what the fund was authorized to invest in. The large purchases when the company was in trouble may also have contributed to keeping the stock price high. Teachers and school district employees as well as other state employees and retirees whose pensions may be affected are demanding an investigation.
Texans deserve to know what role Mr. Ceverha played in this purchase that has resulted in a seven-figure loss for Texas employees and retirees. Did Mr. Ceverha ever suggest to the small cap manager at ERS that KCI would be a good investment? What conversations or communications did Mr. Ceverha have with anyone in the investments department regarding ERS' purchase of 80,000 shares of Mr. Leininger's company? These questions need to be thoroughly investigated so state employees and retirees have a full understanding regarding why they lost so much in these transactions....Why would ERS put millions of dollars into such a risky company that just happened to be founded by a Republican kingmaker?My sister who works for a school district also told me about this.
Given the peculiar circumstances surrounding ERS' risky purchase of 80,000 shares of KCI, I hope that you will immediately launch an investigation. Mr. Leininger built his wealth by cashing out of KCI stock at the top. Unfortunately, given the jury verdict against KCI last week, Texas employees and retirees lost money at a time when pensions - and pensioners - are already suffering.
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