Cayman Police Arrest Hedge Fund Fraud Suspect

Jul 21 2008 | 9:11am ET

Cayman Islands authorities have arrested a man in connection with the collapse of several hedge funds last month.

The unidentified 47-year-old has been taken into custody on suspicion of theft, false accounting and issuing false documents. It is thought that investors lost some US$70 million in the Grand Island hedge funds, although police say they do not know exactly how much was lost. It is also unclear how many investors are affected.

In June, the four funds—three registered with the Cayman Islands Monetary Authority and one unregulated offering—were put into voluntary liquidation by their shareholders. PricewaterhouseCoopers has been appointed the funds’ receiver.

The Grand Island funds primarily traded oil. Close Brothers served as the fund’s administrator, and a prominent Cayman businessman, Naul Bodden, served as a director for at least one of the funds, according to Cayman NetNews.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...