Baltimore Police, Fire Pensions Lose $3.5M in Madoff Fund

Baltimore officials say the city's police and fire pension fund has lost $3.5 million invested in a fund with ties to Bernard Madoff.

Police and fire pension board chairman Stephan Fugate said the board learned of its exposure to Madoff on Dec. 16.

Fugate says pension has about $1.5 billion and about $73 million is managed by New York-based UBP Asset Management. He says UBP invested about 5 percent of that money with Madoff.

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Fugate says the board expects to dissolve its relationship with UBP by March and will likely join with others who lost money in a lawsuit.

The Baltimore area is also being affected by the closure of the JEHT Foundation, which invested its money with Madoff. The foundation was expected to give Maryland crime groups $500,000 for "crime fighting strategies."