The U.S. Commodity Futures Trading Commission (CFTC) has charged two men with misappropriating millions of dollars that could include money from the state of Iowa’s employee retirement fund. The commission charged Stephen Walsh of Sands Point, New York, and Paul Greenwood of North Salem, New York, with misappropriating at least $553-million from investment pool participants such as Westridge Capital Management, Incorporated.

The Iowa Public Employees Retirement System had hired Westridge Capital Management to invest over $300-million. The C-F-T-C’s complaint charges Walsh and Greenwood with futures fraud and misappropriation of pool funds. The commission is also seeking a restraining order freezing the men’s assets and preserving records.

The complaint says the men tried to cover-up their misappropriation of funds by manufacturing promissory notes to present the appearance that pool participants’ funds had been loaned to them. State Treasurer Michael Fitzgerald said earlier this week he was "very, very concerned" and considers the 339-million dollars invested with Westridge "at risk."