Bloomberg - Ritchie Capital Management and Thane Ritchie, the hedge fund manager’s principal, were sued by Barclays Bank Plc over accusations they concealed more than $150 million in investments made in the collapsed Petters Group Worldwide LLC and affiliates.
Now bankrupt, Petters Group, based in Minnetonka, Minnesota, was raided in September by FBI agents acting on […]

Pioneer Press - Tom Petters, who spent two decades building the Petters Group Worldwide into a far-flung empire with $2 billion in sales and 3,200 employees, resigned Monday amid a federal investigation into allegations of fraud at one of his companies.
The move came days after federal authorities raided company offices, homes and vehicles of […]

Forbes - A federal judge in Florida ruled Wednesday that the head of two hedge funds deceived investors about the funds’ holdings. Elsewhere, federal regulators accused a California investment adviser of making tainted recommendations to clients.
In the Florida case, U.S. District Judge Kenneth Marra ruled that Michael Lauer, the head of Connecticut-based hedge funds Lancer […]

New York (HedgeCo.Net) - Paul Eustace, former head of Philadelphia Alternative Asset Management Company, has been ordered to pay back nearly $300 thanks to his fraudulent ways.
According to a statement by the Commodity Futures Trading Commission, the Canadian resident was able to swindle clients by constructing false account statements and exaggerating the fund’s portfolio worth.  […]

Among the 300 investor comments filed over the past month with the Securities and Exchange Commission about naked short selling, most voiced opposition to the abusive version of it.
Adding to the cry against naked short selling is a new proposal that the SEC is slated to release this week protecting publicly traded companies from abusive […]

Boston Globe - A federal judge barred Samuel Israel, the convicted founder of hedge fund firm Bayou Group LLC, from entering a plea to bail jumping, saying his addiction to methadone may have impaired his judgment.

A US judge cited Bayou Group founder Samuel Israel’s methadone addiction and his ability to understand the proceedings.

Israel, who sought […]

International Herald Tribune- Samuel Israel 3rd bilked his investors out of $250 million, but they are hoping to recoup some of their money from one of Wall Street’s deepest pockets: Goldman Sachs.
Bayou’s creditors were taking aim at Goldman even before Israel, the former manager of the Bayou Group hedge fund firm, surrendered to the authorities on […]

Montreal Gazette- IndyMac Bank is under investigation by the FBI for possible fraud involving home loans made to risky borrowers, the Associated Press reported yesterday, citing an unnamed law enforcement official.
The report said it was not immediately clear how long the FBI’s probe of the bank has been ongoing but the probe is focused on […]

Newsday- A 23-year-old man convicted of running a hedge fund scam in Connecticut has filed a federal lawsuit against New York University, claiming the school owes him a diploma.
Hakan Yalincak, an NYU undergraduate, was sentenced last year to 3 1/2 years in prison for persuading investors to pour millions into a nonexistent Greenwich-based hedge […]

MSN UK News- The Hong Kong media says a 63-year-old U.S. citizen has received a longer jail term for masterminding a HK$363 million, or US$46.49 million or euro30 million, hedge fund fraud.
The South China Morning Post reported Wednesday that a court added 26 months to Charles Schmitt’s sentence. It says Schmitt was sentenced in 2006 […]

Philadelphia Daily News- A hedge-fund swindler who was supposed to be driving himself to prison abandoned his car on a bridge with the phrase "Suicide is Painless" scrawled on its hood, but no body has been found in the river below - and the victims of his fraud say they doubt he killed himself.
The FBI, […]

Baltimore Sun- The price of Cadbury PLC’s Caramello candy bar is up 10 percent over the past 12 months, raising a sticky question: Are hedge funds to blame?
Soaring cocoa prices are driving up the cost of chocolate around the world. The chocolate industry points its finger at speculative buying by professional investors, especially hedge funds.
Hedge […]