May 29--A preliminary financial report in an investment scandal unfolding in federal court in New York suggests the University of Pittsburgh and Carnegie Mellon University could lose tens of millions of dollars they invested with Westridge Capital Management Inc. and its affiliates.

The report, filed in U.S. District Court in New York, said the investment funds assets total only about 60 percent of the $1.5 billion in claims various foundation and pension funds -- including Pitt and CMU -- made against them.

Pitt invested $65 million with the fund; CMU invested $49.1 million in 2008.

The court will determine how to allocate Westridge's assets.

CMU officials issued a written statement on the report this morning. It said, "The receivers report is an important step in the process for Carnegie Mellon, and all investors, to begin to recover their funds. We are reviewing the report closely and we will continue to aggressively pursue the recovery of our investment."

Pitt and CMU were among the first investors to ask for the return of their funds. The universities filed suit in federal court in Pittsburgh Feb. 20 in an attempt to recover their money. But the suit was stayed a week later when federal authorities filed charges against Westridge principals Paul Greenwood and Stephen Walsh.

Authorities claim Greenwood and Walsh skimmed $553 million from investments that pension funds and endowments placed with them over 12 years. Prosecutors said the men used investors' funds to fuel their lavish lifestyles and left IOUs in the fund accounts.

Pitt spokesman Robert Hill said he had not seen the receiver's report and could not comment.

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