Despite Promise, Hedge Fund Grifphon Misses Payment

Feb 7 2011 | 8:54am ET

An Oregon hedge fund facing a fraud investigation continues to do little to endear itself to investors.

Grifphon Asset Management has missed another deadline to repay investors, the Portland Business Journal reports. The firm, which has promised to liquidate its funds to fill redemption requests, had told investors that it would collect the proceeds on Jan. 31, but the money did not arrive.

Grifphon would not say what had gone wrong, but told the PBJ, "while Grifphon continues to work towards the liquidation of all its partners, we are unable to begin distributing funds at this time."

"They continue, believe it or not, to make the same promises," one lawyer, who represents a couple that has been seeking its money for more than a year, said.

The Oregon Division of Finance and Corporate Securities last year launched a probe of Grifphon amidst complaints from investors about their inability to withdraw funds. In December, Grifphon founder Yusaf Jawed explained that the firm had been unable to obtain a necessary bridge loan.

Also last month, Grifphon settled a lawsuit—stemming from an unfilled redemption request—filed by an angry investor.

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