Collapsed Hedge Fund Hit By Fraud Claims

Nov 8 2007 | 12:16pm ET

Investors in a hedge fund that went under during this summer’s market turmoil are crying foul, accusing its managers of defrauding them out of as much as $100 million.

According to an arbitration claim filed last month against Sample & Cross Capital Management, investors allege that the firm said the Vega Opportunity Fund would focus on capital preservation. Instead, it managed to lose 75% in a single day, before Sample & Cross pulled the plug on Aug. 17.

Sample & Cross, based outside Chicago, was founded by UBS veterans Matthew Sample and J. David Cross.

Andrew Stoltmann, representing some of the aggrieved investors, filed the complaint with the American Arbitration Association, accusing the firm of violating Illinois antifraud provisions.


In Depth

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

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

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of