LANSING — A nonprofit corporation that manages employee pension funds for more than 1,000 Michigan local governments alleges it was defrauded out of about $55 million after entrusting the money to two Swiss citizens who weren't registered investment advisers.

The losses the Municipal Employees' Retirement System (MERS) suffered on investments in alternative energy projects — disclosed in a Sept. 30 lawsuit filed by MERS in federal court in Grand Rapids — are on top of $100 million MERS lost on a coffee-growing venture in Hawaii, as the Detroit Free Press first reported on Tuesday .

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