Friday, 26 December 2014
Last updated 1 day ago
May 19 2008 | 10:47am ET
As far as returns on investment go, Ohio’s bid to make hedge fund manager Mark Lay pay up paid more than 171%. Unfortunately for the state, it amounted to less than 2 cents for every dollar it lost in Lay’s MDL Capital Management.
Lay—who faces up to 20 years in prison after being convicted of criminal fraud last year—agreed to pay $5 million to settle a civil suit brought by the Ohio attorney general. Both state and federal prosecutors allege that Lay’s MDL invested the Ohio Bureau of Workers’ Compensation in a highly-levered offshore hedge fund without authorization. That investment wound up costing the pension $216 million.
In 2005, Ohio sued Lay for the $216 million, settling for $5 million in March. The state paid more than $1.8 million to pursue the case, leaving it with less than $3.2 million for its troubles—just 1.5 cents on the dollar.
Ohio officials explain they expect federal prosecutors to seek more than $200 million in restitution, and that they saw no reason to pursue the case at further cost given the likelihood of recouping any award.
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.