Pensions were cut. And payments to the Moellers and hundreds of other donors were slashed. Nothing could be further from the truth than these unfounded statements. This loss occurred because one employee went far beyond approved investment policies. Some trusts lost money which caused the distributions to be less than previously paid.
Legal actions are under way to recover the losses.
Individuals and organizations continue to make full use of the Foundation. While we believe that we had sufficient internal controls in place to prevent this type of situation from occurring in the first place, we have nevertheless undertaken a significant number of additional steps to continue to serve our customers. The Foundation is currently interviewing for a new investment consultant to assist in monitoring the results of the 12 investment managers. The Foundation engaged a new custodian bank. The Foundation is continuing to evaluate additional investment firms to expand its diversification of assets.