West Palm Beach, FL ( www.hedgeco.net ) – Arizona authorities have seized about $101 million from an account which may be associated to the Bayou Management LLC, the Connecticut based hedge fund manager currently being investigated by regulators. According to AP reports, the money was seized by the Arizona Attorney General’s Office from Wachovia Corp, following a tip that the money was gradually being transferred all over the world.

Arizona Attorney General Terry Goddard told investors and news correspondents that such action often indicates fraudulent activity according to him. Explanations given by those transferring the money seem to be contradictory. In a particular case, they said the money belonged to an Arizona based gold mine.

Several claims for the money have been submitted to the Arizona State authorities. One claim came from Majestic Capital Management LLC, which is a hedge fund manager based in Stamford, Connecticut which is currently being investigated for fraud. Goddard told AP, “Not making any suppositions about whether it’s connected to Bayou. I want to make that very clear.”

The Bayou Family of Funds had earlier informed its investors that the asset manager will be returning investor’s assets back to them and will shut its doors. It has now been confirmed that the suicide note found in the Bayou Hedge fund office was written by Daniel Marino, Bayou’s Chief Financial Officer. Marino was suffering from depression following numerous requests from their investors to withdraw their assets from the fund. Authorities are currently investigating both Daniel Marino and Samuel Israel III.

The seized $101 million is being kept in the Arizona State Treasury, and state authorities have asked the court to appoint a special master who would administer the funds. One of the New York attorneys representing a few Bayou hedge fund investors said so far his clients have not received their money invested with the fund.

Paul Oranika
Contributing Writer

HedgeCo.Net
Email: Editor@hedgeco.net

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