Saturday, 20 December 2014
Last updated 1 day ago
Feb 1 2008 | 12:07pm ET
UBS’ hedge fund administration business has settled civil charges that it overlooked fraud at a hedge fund client.
UBS Fund Services will pay $19 million to settle a case brought by the court-appointed receiver for defunct hedge fund Philadelphia Alternative Asset Management, which collapsed in 2005.
The King of Prussia, Pa.-based firm’s president, Canadian Paul Eustace, was indicted in November on commodities fraud charges, relating to a scheme in which he allegedly defrauded investors of $200 million in a shell game designed to hide investment losses.
In settling, UBS Fund Services did not admit or deny the charges. The case had been scheduled to go to trial on Jan. 22.
In December, PAAM’s receiver struck a deal with the hedge fund’s former futures broker, MF Global, the former Man Financial, which spun off from Man Group last year. MF Global agreed to pay $75 million.
The two settlements, plus $75 million in recovered assets, have led to an “extraordinary” level of recovery for PAAM investors, the receiver said.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.