(Ohio)State pumped money into high-risk fund(after it started losing money

[Robbien]

Millions of dollars were moved into a high-risk hedge fund after it started showing huge losses for the Ohio Bureau of Workers' Compensation, a newspaper reported Tuesday. The Columbus Dispatch said it obtained bureau records showing that an additional $125 million went into the fund after it had already lost millions.

. . .

Monthly reports from MDL to the bureau show the fund lost $40.6 million in February, March and April of last year, before $100 million was allocated to it in May, the newspaper said. The fund lost at least $73.6 million more before another $25 million was allocated to it September, the records show. The fund had lost $215 million when it was shut down in October, officials said.

Bureau officials have said funds were moved from a conservative bond investment to the hedge fund. Spokeswoman Emily Hicks said senior managers were not aware that money was being moved between the funds, and they didn't learn about the losses until September.

. . .

Another member of the board, Cleveland NAACP director George Forbes, resigned last week when it was revealed his daughter works for MDL Capital Management. Forbes said his daughter's job had no influence on the company's work for the bureau.

http://www.ohio.com/mld/beaconjournal/news/state/11886514.htm