GLG Sued Over Alleged Commission Deal

Mar 24 2009 | 2:00am ET

GLG Partners has been sued by an unidentified London businessman for allegedly failing to pay a promised commission.

According to the complaint, filed in a London court, the unnamed businessman introduced the hedge fund to Saudi sheikh that sought to invest as much as US$4 million in funds managed by GLG’s then-star trader, the Evening Standard reports. The lawsuit alleges that GLG director Paul Harvey offered the businessman a 2% commission if the sheikh invested.

He did, after meeting with GLG executives in 2006, but the suit claims the hedge fund has failed to pay the promised commission, despite receiving a formal invoice in June. The businessman also claims that Harvey asked him to put him in touch with other Middle Eastern investors.

The suit seeks US$80,000, including interest.

GLG said the allegations have “absolutely no basis.”

“GLG will vigorously contest this claim in court,” the hedge fund said.

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