Portus Investigation Resumes After Five Years

Aug 8 2011 | 12:31pm ET

After five years on the shelf—and after two men were sent to prison—the regulatory investigation into collapsed hedge fund Portus Alternative Asset Management is back.

The Ontario Securities Commission resumed its administrative hearings this morning. The regulator had put the investigation on hold in 2006, a year after Portus, which managed C$800 million, collapsed; in the interim, firm founders Boaz Manor and Michael Mendelsohn were sent the prison, the latter in May, three-and-a-half years after returning to Canada after two years on the lam in Israel.

Portus, once Canada's largest hedge fund, was shuttered by regulators in March 2005. The firm–and, by extension, Manor and Mendelsohn, who was sentenced to two years in prison—misused some C$110 million in investor funds, prosecutors alleged.

The OSC can impose fines and bans from the financial industry.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...