Is this (finally) the beginning of the end of the Bayou Group story?
With principal fraudsters Samuel Israel and Daniel Marino awaiting sentencing on all manner of fraud and wrongdoing charges, court-appointed receiver Jeff Marwil claimed victory in winning back some of the hedge funds’ “fictitious profits.”
Marwil, a partner with law firm Jenner & Block, in May filed suit against Bayou clients who redeemed their investments between May 2004 and May 2006, arguing that the money they received were “the proceeds of fraudulent, Ponzi scheme distribution.”
Today, Marwil announced that the UT Medical Group Basic Pension Plan has agreed to disgorge all of the profits it received from Bayou. “The settlement with UTMG is a complete victory for Bayou,” he said. So much for being smart (or lucky) enough to get out in time.
“This is a win-win for Bayou and the defrauded investor creditors,” Marwil said. “The litigation was resolved in a fair and equitable manner, and without unnecessary legal expense on either side.”
As for the rest of the early withdrawers, it seems luck is about to run out: Marwil said he expects to reach several additional settlements in the near future.