Monday, 26 September 2016
Last updated 4 min ago
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.