Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
HedgeCo.net (West Palm Beach) – Off-shore hedge fund law firm, Sadis & Goldberg LLP, sent out a letter to their clients announcing that the Securities and Exchange Commission (SEC) appears determined to issue more subpoenas and give people more incentives to cooperate with investigations as it works to enhance its oversight of the financial markets.
The letter, obtained by HedgeCo, explains, ”Don’t be surprised if you receive a subpoena or are contacted by the SEC.” Daniel G. Viola, spokesperson for Sadis & Goldberg, said, ”The SEC has significantly increased its enforcement efforts since the recent discovery of certain high profile Ponzi schemes.”
Effective August 11, 2009, the SEC has also made it easier for its staff attorneys to issue subpoenas. Thus, the SEC staff attorneys will no longer have to obtain formal approvals to issue subpoenas; instead, they will simply need approval from their senior supervisor.
”If you receive an inquiry letter or subpoena from the SEC, remain calm, ”Viola said, ”This is not uncommon given the current regulatory climate. Above all, do not respond without first contacting legal counsel.”
The The SEC generally has broad powers to conduct investigations of potential violations of the federal securities laws and often works with the Department of Justice in connection with joint proceedings, often known as ”parallel proceedings.”
The law firms Regulatory Practice Group consists of former SEC personnel and litigators with experience regarding civil and criminal proceedings.
Contact info: Daniel G. Viola at 212.573.8038 (or dviola@sglawyers.com) Christiaan Johnson-Green at 212.573.8169 (or cjohnson-green@sglawyers.com)
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HedgeCo.net (West Palm Beach) – The U.S. Court of Appeals affirmed a district court’s decision that also dismissed a securities fraud case against New York-based hedge fund investment adviser Hennessee Group LLC.
Judge Colleen McMahon of the U.S. District Court for the Southern District of New York that dismissed claims of breach of contract and securities fraud in South Cherry Street, LLC. v. Hennessee Group. All of South Cherry’s arguments on the appeal were found to be without merit.
The claims were in connection with Hennessee’s investment advice regarding Bayou Management’s hedge funds that were uncovered as part of a large Ponzi scheme, for which Bayou’s principals were found guilty of securities fraud in 2005.
“We are delighted with the Second Circuit’s decision that finds all claims of breach of contract and securities fraud against Hennessee are without merit. Bayou’s Ponzi scheme caused many unfortunate events, but the Court’s decision establishes that Hennessee was not a participant on any level,” said Bennett Falk, Hennessee’s trial counsel and a partner in the securities litigation and regulatory practice group in the Florida office of Bressler, Amery and Ross, P.C.
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West Palm Beach (HedgeCo.net) – Hedge fund tax manager at Wellington Management Company, John F. Harvey III, has joined international law firm Proskauer Rose LLP as a partner in the Boston office.
At Proskauer, Harvey will be a partner in the Tax Department, where he will focus on tax aspects related to the formation, operation and investment activities of a broad range of private investment funds, such as buyout, venture and hedge funds, among other things.
“John’s unique and varied skill set will serve as an ideal strategic complement both here in Boston and across the firm,” Steven M. Ellis, head of Proskauer’s Boston office, said. “Our private investment funds practice is extremely tax intensive and, as we expand our capabilities around the world, this experience becomes even more important. John is a key addition to what is already a tremendous platform.”
Proskauer’s Private Investment Funds Practice Group, which is recognized by Chambers USA, US Legal 500 and numerous other directories and publications as among the leading practices of its kind, represented sponsors in closing more than 125 funds with over $30 billion in committed capital and closed more than 450 investments in all types of funds, representing well over $19 billion, in 2008.
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
West Palm Beach (HedgeCo.net) – Hedge fund tax manager at Wellington Management Company, John F. Harvey III, has joined international law firm Proskauer Rose LLP as a partner in the Boston office.
At Proskauer, Harvey will be a partner in the Tax Department, where he will focus on tax aspects related to the formation, operation and investment activities of a broad range of private investment funds, such as buyout, venture and hedge funds, among other things.
“John’s unique and varied skill set will serve as an ideal strategic complement both here in Boston and across the firm,” Steven M. Ellis, head of Proskauer’s Boston office, said. “Our private investment funds practice is extremely tax intensive and, as we expand our capabilities around the world, this experience becomes even more important. John is a key addition to what is already a tremendous platform.”
Proskauer’s Private Investment Funds Practice Group, which is recognized by Chambers USA, US Legal 500 and numerous other directories and publications as among the leading practices of its kind, represented sponsors in closing more than 125 funds with over $30 billion in committed capital and closed more than 450 investments in all types of funds, representing well over $19 billion, in 2008.
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
West Palm Beach (HedgeCo.net) – As investors look to independent and unbiased hedge fund risk due diligence, Pelorus Advisors has decided to launch an operational risk management service for hedge fund investors. Unlike other due diligence firms, Pelorus only offers its risk due diligence service to hedge fund investors.
“It’s an enormous conflict of interest for diligence teams to be compensated by the same hedge funds they cover,” said Jeff Rathgeber, co-founder and partner of Pelorus. “The hedge fund community has seen more than enough target-sponsored ‘independent’ report cards. We’ll let other risk management firms issue their seals of approval based on manager-supplied data.”
Pelorus is staffed by a team of hedge fund experts that have spent years operating inside complicated hedge fund structures. “It is only from this vantage point that an advisory firm gains the experience needed to identify the true risks that hide within hedge funds,” said Ken McGee, Managing Director of Pelorus’ Hedge Fund Practice Group. “It is exactly this kind of experience that is missing from most hedge fund due diligence firms. In our opinion, this lack of inside experience is what moves most firms away from being Hedge Fund Risk Experts and moves them into the category of Data Regression Analysts.”
“A clear distinction that separates Pelorus Advisors from other firms is that we don’t harvest massive amounts of publicly available data, crunch it, and issue armchair reports to investors,” said Rathgeber. “Nor do we merely rely on data that is supplied by the target hedge funds we audit. Instead, we conduct in-depth, on-site engagements to dig deep into a hedge fund’s operations and run through its control structure to ensure that our clients’ investments are properly protected.”
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
