Philly union sues Texas firm for Madoff losses

One of Philadelphia's largest unions says its pension fund lost $700,000 to former Nasdaq stock market chairman Bernard Madoff's phony investment schemes.

The Pension Fund for Hospital and Health Care Employees - Philadelphia and Vicinity, the retirement plan for 10,000 members of Philadelpia's District 1199C hospital workers' union, and union president/fund trustee Henry Nicholas, have filed a federal lawsuit against Austin Capital Management Ltd., Austin Texas, alleging the firm invested $700,000 in Madoff-related securities.

The $290 million pension plan invested a total of $10 million with Austin on the recommendation of hedge fund consultant Marco Consulting, Chicago, said Theodore M. Lieverman, a partner with the Philadelphia law firm Spector, Roseman, Kodroff & Willis, which represents the pension fund.

The case was filed in Philadelphia federal court, E.D. Pa. 09-civ-615, yesterday.

» READ MORE: Read the filing