The United States government employee investment Thrift Savings Plan's "I Fund" Manager, Samuel Hoeffler, was arrested Friday morning in his penthouse in the upper east side of New York City.
The United States government employee investment Thrift Savings Plan suffered a massive loss of confidence last week after allegations that its"I Fund" suffered from several accounting irrelegularities all the way backto 2007 that may result in drastic restatements in earnings for the venerable fund.
Prosecutors said The Federal Retirement Investment Board was cooperating with the investigation and were painting Samuel Hoeffler as a rouge manager who lost control of the fund sometime in late 2006 and had hoped for further market growth to cover the losses.
The question that The Federal Retirement Investment Board has to cope with now is the impact on inter-fund transfers. At the moment they have not frozen withdrawls from the fund. Previous transfers in to other funds are now in question, as the funds from which these transfers originated may not actually exist, harking to such ponzi schemes as the recent Madoff scandal.
The arrest was unexpected for Mr. Hoeffler, who as recently as January had spoken before a House sub-committee on Military Affairs regarding the future solvency of the TSP.
The Federal Retirement Investment Board is preparing a statement on what this means for millions of veterans and government employees who rely on the
TSP for their retirement savings. They expect to release a website for the potential victims of this fraud by the end of the week. A White House spokesperson had no official comment at publishing.
The Federal Retirement Thrift Investment Board (FRTIB) has become aware of an e-mail and Internet hoax purporting illegal activity on the part of an individual said to manage the Thrift Savings Plan (TSP) I Fund. The
TSP is actively investigating the origins of the bogus web site.
The individual named (Samuel Hoeffler) and his connection to the TSP investment funds are completely fictitious. Be assured that the TSPís I Fund has not suffered from accounting irregularities and is not insolvent.
All of the TSP funds, with the exception of the Government Securities Investment Fund (G Fund) are passive investments. In other words, they are invested in index funds; they are not managed by an individual actively selecting securities in an effort to outperform the market. The investment objective of each fund is to achieve approximately the same return as the particular market index that it tracks. The I Fund, for example, is invested in a stock index fund that tracks the Morgan Stanley EAFE Index. The TSPís C, S, I, and F Funds are managed by Barclays Global Investors, one of the largest and most respected investment managers in the world.
Participants should always exercise caution if they receive unusual or suspect e-mail.
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