Court Rules In Partner Vs. Partner Hedge Fund Dispute, Will Investigate Forgery Claim

Jan 30 2013 | 1:13pm ET

The dispute between a pair of former hedge fund partners will continue, even after a New York appeals court found unanimously that one had improperly withheld profits from the other.

The Manhattan court found that James Melcher should be awarded damages for Brandon Fradd's withholding of the $6 million. The two ran the now-defunct Apollo Medical Partners.

A jury had ruled that Melcher had no case, because he had failed to complain about the matter while he was still employed at Apollo. The appeals court dismissed that argument, finding "no rational interpretation of the evidence supports" it.

But the court also denied Melcher's bid to hold Fradd personally liable—for now. It also called for an evidentiary hearing into allegations that Fradd forged an amendment to Apollo's profit agreement and then burned it when Melcher hired an ink expert to test it.

The appellate panel said it was "troubled" by the claim and that if it were proven true, "the court should impose a monetary sanction."

Fradd claims that the amendment was legitimate and that he burned it accidentally while making tea.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...