Another investor is suing a Greenwich, Conn., hedge fund firm, accusing it of mismanaging its product to the benefit of its managers and to the detriment of its clients.

Westerly Capital filed suit earlier this month against Windmill Management and its operators, Alan and Philip Milton and Richard Weygand in Stamford Superior Court. Westerly said Windmill’s SageCrest hedge fund—which is liquidating—has not provided audited financial statements for several years. He also said the managers overvalued the fund's assets “in furtherance of a scheme and/or course of conduct designed to personally enrich themselves even if this proved detrimental to the fund and its investors.”

Westerly is seeking an accounting of the money lost in the hedge fund.

A lawyer for Windmill called the lawsuit “the worst abuse of our system” and “an attempt to shake people down.

Earlier this year, hedge fund Wood Creek Capital Management sued SageCrest, alleging it reneged on a redemption agreement. Wood Creek is seeking to take control over SageCrest.

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Wood Creek Seeks Control Over SageCrest