Wednesday, 1 October 2014
Last updated 3 hours ago
Oct 18 2010 | 10:45am ET
The court-appointed trustee in the Thomas Petters Ponzi scheme case filed the last of more than 200 clawback lawsuits last week, seeking hundreds of millions of dollars in allegedly phony profits. Among those sued by Douglas Kelley were hedge funds Ritchie Capital Management and Westford Global Asset Management.
Kelley wants Ritchie and six affiliates to return some $21 million in allegedly fraudulent transfers. It is not the first time that the Wheaton, Ill.-based firm has found itself in court over its relationship with Petters; the firm has been sued by Barclays Bank and Polaroid Corp.—one of the businesses owned by Petters. Ritchie itself has sued bother Polaroid and former Petters Group Worldwide executives Mary Jefferies and Camille Chee-Awai.
Ritchie also sought last year to block Kelley's appointment as trustee for some of Petters' bankrupt businesses.
Kelley last week also sued Steven Stevanovich's Westford, which he says served as a feeder fund for Petters' $3.65 billion Ponzi scheme. According to Kelley, Westford funneled more than $2.4 billion to Petters in the form of high-interest loans, earning the fund $323.3 million in false profits.
The trustee also cited the ongoing Securities and Exchange Commission investigation into Westford's "valuation of the loan investments."
Stevanovich denied any wrongdoing, calling Kelley's lawsuit "false in each and every respect."
"Like regulators and so many other victims of Petters, we had absolutely no indication that Petters was engaged in fraud," he said.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...