Thursday, 21 August 2014
Last updated 10 hours ago
Aug 27 2010 | 10:50am ET
Investors in a hedge fund managed by former presidential candidate H. Ross Perot’s family office have sued its accountants, accusing them of helping Parkcentral Capital Management defraud them.
The lawsuit alleges that Ernst & Young “facilitated, assisted in and participated in” the fund’s fraud. A lawyer for the investors said that Parkcentral’s “audited financial statements never once warned Parkcentral’s investors of their impending doom.”
Parkcentral itself was sued last year over the 2008 collapse of its $2.6 billion Global Hub hedge fund, which plaintiffs allege was controlled by the Perot Family Trust and other Perot-controlled entities. According to one lawsuit, Parkcentral misled investors about the fund’s liquidity, leverage and risk controls, leading to the complete wipe-out of the hedge fund’s value.
JPMorgan Chase has also sued Plano, Texas-based Parkcentral for defaulting on a $125 million margin call.
The plaintiffs in the latest lawsuit lost some $17 million in two Parkcentral hedge funds that collapsed.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note