Newsday – A federal probe of the $1.8-billion collapse of Bear Stearns hedge funds has spread to include the activities of a number of banks and other lenders, according to court records and legal sources.

Investigators are also reviewing various private financial memorandums prepared by Bear Stearns officials for possible fraud against wealthy investors, said the sources.

One of the banks that may have been defrauded in the case was Barclays Bank PLC, the British institution that last year filed a federal lawsuit against Bear Stearns & Co. Inc. over losses from the hedge fund, said one attorney familiar with the case.

Federal prosecutors in Brooklyn are overseeing the Bear Stearns case while other Wall Street probes are being carried out by federal officials in Manhattan, said attorney Andrew Entwistle, who is representing investors suing the parent Bear Stearns Companies Inc. and affiliates.

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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 fund.

A $21 million gift that Yalincak had promised to New York University proved to be an a fraud. The $1.25 million first payment turned out to be illegal proceeds from the hedge fund scam.

He was also ordered to pay restitution of $4.18 million.

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