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

In Depth: Are Large Judgments The Next Target for Hedge Funds?

Aug 12 2015 | 3:46pm ET

Hedge funds are no strangers to making investments that are sensitive to litigation...

Lifestyle

Provio Brings Anonymous Interviewing to Wall Street

Aug 12 2015 | 2:44pm ET

Taking a page from social networking and dating websites, a startup technology company...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note