Family Alleges Hedge Fund Managers Were ‘Not Competent’

Apr 1 2010 | 8:39am ET

A Las Vegas hedge fund—which may or may not even exist—is being accused of defrauding an investor of $8 million.

The managers of the Black Card Group collected the money from the Urata family, presenting the fund as an “exclusive” and “really safe” investment vehicle, the family alleges. Now, the Uratas say, they’re not even sure that Black Card exists at all. If it does, “the managers were not competent to manage an investment fund,” they allege.

Those managers are Ethan Conrad, Harrold Pressly and Frank Sim, according to court documents. The lawsuit accuses them of negligence, breach of contract and misrepresentation.

The Uratas are seeking $8.2 million in damages.

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