Schools to Recoup Losses from Investment Scam.

• Position: Pennsylvania scandal recovery - Brief Article - Statistical Data Included

Eight million dollars will be spread among 50 Pennsylvania school districts to recover losses from the largest public-funds scandal in Pennsylvania history--the implosion of an investment scheme engineered by financial manager John Gardner Black. Black lost an estimated $69.5 million dollars in funds from public investors between 1994 and 1997. The agreement has law firm Kutak Rock Inc. paying $4 million of its $8 million settlement to Tyrone Area School District in Blair County. Tyrone Area suffered the greatest loss. The school district stands to pocket half of the settlement because it claims it was victimized twice--once when the law firm worked for Black, developing his financial agreements...