Texas loses $19.5 million in Madoff investment

AUSTIN, Texas (AP) - The Texas treasury lost $19.5 million through an investment in the Ponzi scheme run by convicted financial swindler Bernard Madoff.

The Houston Chronicle reported Wednesday that the money was part of a $224.5 million investment the Texas Treasury Safekeeping Trust Co. had with a Texas-based hedge fund called Austin Capital Safe Harbor.

Austin Capital closed in May due to losses it suffered in one of Madoff's scam investment funds.

R.J. DeSilva, a spokesman for state Comptroller Susan Combs, said the $19.5 million was written off last December after Austin Capital notified the state the money had been lost when Madoff's Ponzi scheme collapsed.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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