Lake Shore Victims To Get $104 Million

Mar 18 2010 | 8:45am ET

Clients of Lake Shore Asset Management, the Chicago hedge fund accused of lying to investors, will get about 40% of their money back under a plan approved by a federal judge this week.

Investors, who have claimed losses of $268 million, will get $103.9 million back under an order signed by U.S. District Judge Blanche Manning on Monday. Robb Evans & Associates, the receiver for the hedge fund, has recouped about $110 million, $3 million of which has been set aside to cover Robb Evans’ costs and those of any potential appeals.

Regulators pulled the plug on Lake Shore in 2007, accusing it of improperly charging incentive fees and hiding almost $40 million in losses from investors. According to the Commodity Futures Trading Commission, the hedge fund sent phony account statements claiming substantial profits.

Lake Shore founder Philip Baker has been charged with wire fraud, obstruction of justice, commodities fraud, embezzlement of commodity pool funds and criminal contempt for running a $312 million fraud. His trial is set to begin in August; Baker faces up to 25 years in prison if convicted.

Manning said that Lake Shore has been “completely uncooperative” in the investigation.

Robb Evans said it hasn’t given up looking for money, leaving open the possibility that more could be found. Ira Bodenstein, a lawyer for the receiver, said no schedule for payments has been made.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.