Visium Jury Told Bond Trader Lied to Boost Fund’s Numbers

(Bloomberg) U.S. prosecutors said portfolio manager Stefan Lumiere cheated investors at Visium Asset Management LP by inflating the value of distressed-debt holdings in the hedge fund’s credit portfolio, as his securities’ fraud trial began Wednesday.

“For years, Lumiere corrupted the valuation process at his hedge fund to make the results look better than they were,” Assistant U.S. Attorney Damian Williams said in opening statements. Investors “trusted Lumiere to do right by them, to play it straight. Instead of being honest, Lumiere lied.”

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