Tuesday, 30 August 2016
Last updated 14 hours ago
Dec 28 2009 | 12:45pm ET
The Bayou Group collapsed more than four years ago. The hedge fund’s masterminds, who defrauded investors of some $450 million, are behind bars. And now, the Stamford, Conn.-based firm’s story is finally coming to an end.
A judge has approved the Bayou receiver’s liquidation plan. The court’s confirmation order will force Bayou investors, like those of other recent hedge fund frauds, to return any fictitious profits they withdrew prior to the firm’s 2005 collapse. The judge also ruled that investors who had suspected something was amiss at the firm had to return any principal they withdrew.
The plan also details how the recovered assets are to be returned.