Bloomberg – Man Group Plc’s U.S. brokerage unit violated a court order by failing to turn over $179 million it took from Philadelphia Alternative Asset Management, a hedge fund that collapsed last year, according to the receiver in the case.
Clark Hodgson, who’s trying to recover the fund’s remaining assets, filed a motion yesterday in federal court seeking an order to force Man Financial to hand over the money. Man Financial said in a court filing on Jan. 6 that it was entitled to use the $179 million to cover Philadelphia Alternative’s trading losses.
The dispute pits Philadelphia Alternative’s investors against Man Group, the world’s largest hedge fund company. Hodgson was appointed the fund’s receiver after the Commodities Futures Trading Commission sued Philadelphia Alternative in June, accusing it of fraud. The U.S. Securities and Exchange Commission and the Federal Bureau of Investigation are probing the case, court records show.
Therese Doherty, a lawyer for Man Financial, said today that the brokerage firm is “confident of its position and awaits the opportunity to present the issue to the court.”
