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HeraldTribune.com – An attorney representing newsletter writer Don Rowe, who strongly recommended Arthur G. Nadel’s hedge funds to some investors, is seeking to have a civil fraud suit against his client dismissed.
In an Aug. 3 filing in circuit court in Sarasota County, Tampa attorney Edward O. Savitz claims that Rowe was not the ultimate cause of the investors’ losses: He did not sell or offer any securities and some of the plaintiff’s claims are barred because too much time has passed.
Sarasota attorney Drew Clayton is representing 11 investors in Nadel’s failed hedge funds and seeking damages of $5.4 million. All his clients were subscribers to one of the publications Rowe published from Sarasota: ”Wall Street Digest” or ”Carnegie Asset Management Inc. Reports.”
Boston Globe – A Boston law firm has filed a class-action lawsuit against a hedge fund controlled by Massachusetts Mutual Life Insurance Co. for placing all of the fund’s assets with Bernard Madoff, who is facing life in prison for conducting a massive fraud.
The lead plaintiff is Lawrence J. Rothschild, a Needham businessman who invested about $1.1 million with the Rye Select Broad Market XL Fund, according to the lawsuit, filed yesterday in Massachusetts Superior Court.
The suit alleges that Rye did not explicitly say that it placed all of its assets with Madoff, and that the firm’s parent, Tremont Partners Inc. (also part of MassMutual), ignored red flags about Madoff’s activities.
New York (HedgeCo.Net) – Peter Madoff, brother of convicted Ponzi schemer Bernard Madoff, had his assets temporarily frozen by a New York State Judge yesterday. The Chief Compliance Officer of Bernard L. Madoff Investment Securities LLC was sued by an investor who lost almost half a million dollars in the master fraud committed by his brother.
The plaintiff, Andrew Samuels, entrusted Peter Madoff with an inheritance of $470,000 in which Peter, who was the sole trustee from 2003 to 2008, took and invested with his brother. When the scam collapsed and Samuels realized all of his money was gone, he contested that Peter breached his fiduciary duty.
New York State Supreme Court Justice Stephen A. Bucaria froze the assets until the next hearing on April 3rd.
Despite the massive $50 billion fraud that Bernard Madoff masterminded for decades, no other employees of the firm or subsidiaries have been charged with any wrongdoing.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
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