Tuesday, 7 July 2015
Last updated 43 min ago
Nov 1 2013 | 11:57am ET
A Thomas Petters-linked hedge fund fraud case will go to trial, a federal judge has ruled.
Marlon Quan and his Acorn Capital Group and Stewardship Investment Advisors are accused of helping Petters cover up his $3.5 billion Ponzi scheme, engaging in so-called "round-trip" transactions in which Petters wired money to the firms which was returned immediately. Quan allegedly raised more than $459 million for the scam, according to a 2011 Securities and Exchange Commission lawsuit.
The suit will now go before a jury after U.S. District Judge Ann Montgomery rejected both sides' motion for summary judgment.
Montgomery found that the question of whether Quan's "lockbox account" and due-diligence representations were actually misleading is for a jury to determine.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…