Wednesday, 23 July 2014
Last updated 12 hours ago
Dec 17 2009 | 8:50am ET
Several hedge funds may have to give back millions of dollars made on their investments with convicted Ponzi schemer Thomas Petters.
Douglas Kelley, the court-appointed receiver for the Minnesota businessman and hedge fund manager’s companies, has sent letters to an unspecified number of hedge funds demanding the return of about $300 million in phony profits paid out by Petters over the years.
Petters was convicted earlier this month of running a $3.65 billion Ponzi scheme. During the trial, it emerged that at least two hedge funds had made about $300 million apiece through his scam. One, a Minnesota hedge fund called Opportunity Finance, allegedly received between $250 million and $300 million in bogus profits, while another, Epsilon Financial Management, got $300 million.
Kelley isn’t targeting just hedge funds: The receiver has also sent letters demanding clawbacks to several nonprofits that received money from Petters, including Petters’ own philanthropic foundation.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…