Hong Kong Hedge Fund Frozen On Fraud Fears

Apr 28 2009 | 10:11am ET

Regulators in Hong Kong have frozen the assets of a hedge fund accused of defrauding investors.

The Securities and Futures Commission won court permission to freeze more than US$110 million in assets related to Descartes Investment Management’s Descartes Athena Fund. The regulator said that the Hong Kong-based firm may have given investors fraudulent investment contracts and accounting statements.

According to the SFC, Descartes raised about US$104.9 million from 313 investors, mostly from Taiwan. But as investors attempted to withdraw their money from the fund last year, the regulator said it has found evidence that the fund’s managers had liquidated assets in the middle of 2008.

“The SFC’s urgent action was prompted by concerns that client monies were at risk of dissipation,” it said in a statement.

The Hong Kong High Court granted an injunction today giving the SFC the power to freeze up to US$90.6 million in assets of individuals or legal entities related to the fund, as well as another US$20.8 million transferred from Descartes Global Asset Management to an unidentified third party.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR