NIR Head Canned By Liquidator

Feb 6 2012 | 2:48pm ET

Corey Ribotsky, facing allegations that he misappropriated more than $1 million from his NIR Group hedge fund, has been dismissed as the fund's manager.

Ribotsky was booted by PricewaterhouseCoopers, the fund's court-appointed liquidator, reports Long Island Business News. The move comes four months after the Securities and Exchange Commission filed a fraud lawsuit against Ribotsky, which accused him of using fund assets to pay for lavish personal expenses. But the complaint includes no allegations, leveled against Ribotsky and NIR by investors, that Ribotsky fraudulently valued assets.

Ribotsky remains head of Roslyn, N.Y.-based NIR, but it is unclear whether the firm has any other hedge funds in its stable. He has not been charged with any wrongdoing.

PwC said that NIR has charged at least $52 million in fees and expenses since it froze redemptions. Half of that was charged by NIR, and half by a collateral management firm owned by Ribotsky, First Street.

The liquidator added that NIR in December had only $130,000 in cash for liquidation expenses.

"We do not confirm nor deny them as we have not independently verified the same," NIR spokesman Brad Gerstman told Long Island Business News.

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