Wednesday, 28 January 2015
Last updated 6 hours ago
Apr 1 2014 | 12:13pm ET
The pension fund for employees of the Boston area’s mass transit system has sued the manager of a bankrupt hedge fund it invested with.
The Massachusetts Bay Transportation Authority Retirement Fund alleges that Fletcher Asset Management and founder Alphonse Fletcher defrauded it of more than $50 million. The pension, which said it lost $25 million with Fletcher, accused the New York-based firm of inflating asset values and management fees, among other misdeeds.
With the lawsuit, the MBTARF joins three Louisiana pensions in seeking recompense from Fletcher in court. The court-appointed trustee overseeing one of the firm’s hedge funds has said that Fletcher resembles a Ponzi scheme.
The MBTA pension had already sued Fletcher’s auditors and its valuation firm.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…