Monday, 20 October 2014
Last updated 2 days ago
Feb 15 2011 | 8:40am ET
Two New York-based hedge funds named as defendants in a lawsuit launched by victims of Scott Rothstein’s $1.2 billion Ponzi scheme are fighting back.
Platinum Partners Arbitrage Fund and Centurion Structured Growth invested with Rothstein and are named as defendants in a 2009 suit launched by a group of Rothstein investors headed by Fort Lauderdale entrepreneur Doug Von Allmen. The lawsuit seeks damages of $280 million.
The funds, according to the South Florida Sun Sentinal, are already contesting settlement agreements reached by the trustee for Rothstein’s bankrupt law firm, Rothstein Rosenfeldt Adler. They are also suing one of Rothstein’s banks (TD Bank) and Rothstein’s largest feeder, Fort Lauderdale businessman George Levin.
Now Platinum Partners has filed a counterclaim in the state case, alleging the funds lost over $20 million thanks to their investments with Rothstein and that Von Allmen and other investors have overstated their own losses by not accounting for returns received from Rothstein. The counterclaim suggests the investors have overstated their losses by $120 million.
The funds also claim that they did not solicit investments for Rothstein but that Von Allmen did:
“By thus joining Rothstein's conspiracy, it is Von Allmen and those who conspired with him who have rendered themselves liable under Florida law to all victims of Rothstein's scheme, including the Fund Defendants and those Plaintiffs who did not join in Von Allmen's conspiracy,” the counterclaim alleges.
Fort Lauderdale attorney Bill Scherer, who represents the investors, denied that, telling the Sun Sentinal:
“They essentially took the allegations that we have made against them for aiding and abetting the Rothstein Ponzi and flipped it around, and said our victims did what we accused them of doing,” he said.
Rothstein is serving a 50-year prison sentence after pleading guilty to racketeering, money laundering and fraud.
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...