Grifphon, Sasquatch Lawsuit Grows

Jul 30 2012 | 1:23pm ET

Things were even more rotten at two Oregon hedge funds than investors originally believed, according to an amended lawsuit.

Clients of Grifphon Asset Management and Sasquatch Capital added to their allegations against the hedge funds, their managers and accountants. The new complaint alleges that Grifphon founder Yusaf Jawed used $200,000 of investor money to buy a Portland penthouse apartment that he later defaulted on and lost, that the founders of the two hedge funds had accused each other of misappropriating investor money—and that their accountants, Perkins & Co., knew about it—and that Perkins did not tell clients that it had stopped working for Grifphon and Sasquatch because neither could verify the existence of their assets.

The two hedge funds are under investigation by both federal and state authorities. Grifphon's Jawed has denied any wrongdoing.

The amended complaint drops allegations against two Grifphon managers and Jawed's ex-wife. The accused now include Jawed, Sasquatch's Lyman Bruhn, Bruhn's wife, Perkins and two accountants at Perkins.

The aggrieved investors say that the two hedge funds were a Ponzi scheme that ran for more than a decade; a lawyer for them puts total losses in excess of $40 million.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.