Message from ONU President Kendall L. Baker
As you may know, there have been stories in Ohio newspapers in the past couple of days about Bowling Green State University's $15 million investment in Westbridge Capital Management, Inc. We wanted to let you know that ONU's Endowment had a $10 million investment with this company as well. We have filed a redemption request and our attorneys are working aggressively to retrieve as much of our money as possible. For your information, below is the news release on this matter we will be circulating to the media.
Kendall L. Baker
Ohio Northern University
Ohio Northern University Endowment Seeks to Recoup Funds After SEC Reveals Investment Fraud
ADA— The Ohio Northern University Endowment is seeking to recoup $10 million after the University learned its funds were part of an investment fraud run by two East Coast partners who owned and operated Westridge Capital Management, Inc.
The U.S. Securities and Exchange Commission charged Stephen Walsh and Paul Greenwood, owners of Westridge, with misappropriation of $553 million of investor’s assets on Feb. 25. The SEC alleges that the pair solicited a number of institutional investors, including educational institutions and public pensions and retirement plans, by promising to invest their money in an “enhanced equity index” strategy.
ONU President Dr. Kendall L. Baker said, “The University is diligently working with its investment advisors and attorneys to rectify this unfortunate situation and recover the money that was lost in the fraudulent investment.”
On May 15, 2007, ONU agreed to invest $10 million from its endowment with Westridge. In February 2009, the University learned of the government’s allegations against Westridge and sought full redemption of its investment.
“It is too early to know if we can get back any portion of the lost investment, but we are confident our attorneys will aggressively pursue the matter,” Baker said. “This loss will not affect the University in any immediate way. We will continue to be able to meet our obligations.”