Halls of Justice

An investor group led by hedge fund Appaloosa Management has settled a lawsuit stemming from its decision last year to back out of a $2.55 billion financing deal with then-bankrupt auto parts maker Delphi Corp.

Helmut Kiener, the accused fraudster and founder of fund of hedge funds K1 Group, is trying to offload a mansion he owns through a company headed by an accused co-conspirator.

The Commodity Futures Trading Commission has asked a federal judge to find an Oklahoma hedge fund manager in contempt of court—again.

Despite a trio of arrests, including of the firm’s founder, the auditor for fund of hedge funds shop K1 Group said it would be “bold” to assume the fraud allegations against it are true.

The Securities and Exchange Commission is continuing its crackdown on insider-trading, charging seven people, including a former hedge fund executive, in its latest complaint.

Ronald Yee, who until last year served as CFO of San Francisco-based ValueAct Capital, was hit with civil charges on Friday. But unlike the insider-trading case of Raj Rajaratnam, the Galleon Group founder, ValueAct was apparently not the beneficiary of Yee’s alleged malfeasance.

Bernard Madoff’s accountant has struck a deal with federal prosecutors, admitting that he played a role in the $65 billion Ponzi scheme.

Two of Europe’s biggest banks may have lost as much as $300 million in the alleged K1 Group hedge fund fraud.

Galleon Group founder and accused insider-trader Raj Rajaratnam has asked a judge to cut his record $100 million bail to something a little bit more manageable.

A California hedge fund executive has struck a plea deal with prosecutors in a fraud case that involves a bizarre shakedown attempt.

Police in the U.S. and Germany have made three arrests in connection with the fraud investigation into German fund of hedge funds K1 Group.

The firm’s founder, Helmut Kiener, was arrested yesterday on suspicion of fraud and breach of trust. A German court today ordered him held in custody.

Meanwhile, U.S. police arrested two suspects in Miami and Nebraska, both reportedly connected to the K1 probe.