SEC Turns Up The Heat On D.B. Zwirn

May 28 2008 | 11:51am ET

The Securities and Exchange Commission has stepped up its probe of asset valuation at hedge fund D.B. Zwirn & Co. with a round of subpoenas.

The regulator, which is looking into alleged irregularities about how D.B. Zwirn valued its high-yield bond portfolio, is seeking information from investors and staff, the Financial Times reports. In addition to questions about valuation, the SEC is also asking about internal fund transfers and the billing of expenses to investors.

The New York-based firm, which is shuttering its largest funds and returning $4 billion of the $5 billion it manages, last year told investors that an internal audit turned up improper financial transfers and accounting of expenses. D.B. Zwirn also said that one of its fund managers did not “follow a systematic pricing methodology” for high-yield bonds, and returned $818,398 in management fees earned on the discrepancy.

The manager in question left the firm in 2005.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Controlling With Confidence: A ‘How-To’ For Hedge Fund Managers

Dec 22 2014 | 11:52am ET

Hedge funds are increasingly turning to third party services to help with operations...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

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.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.