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.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…