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

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat