WEST PALM BEACH, FL (www.hedgeco.net) – An investor with the failed Bayou Hedge fund has filed a lawsuit against the asset manager for the funds invested in the firm. According to Dow Jones, South Cherry Street has logged a complaint with the New York State court complaining of the difficulties he is encountering while trying to withdraw their assets from the Bayou Hedge Fund Group.
The investor has reportedly invested $1.5 million in Bayou, and complains that after promises were made by Bayou, about returning such assets, the firm has failed to deliver on such promise. The lawsuit has been filed against the Bayou founder Samuel Israel III, who is currently being investigated by the US regulators for fraud. Bayou Management LLC has claimed that it has well over $440 million in investor’s money under management.
Israel has promised Bayou investors since July that he would be returning their money because of his marriage problems and pending divorce. Investigators began examining the firm’s records when an investor complained about problems in the firm.
This is the first of such lawsuits filed, and Financial Times reported that another group of five investors is also considering filing their own law suit as well. According to the Financial Times, Law firm Rich Intelisano is representing the five investors.
Recently, the Arizona authorities seized $101 million from an account which may be associated with the Connecticut based Bayou Management LLC. According to AP reports, the money was seized by the Arizona Attorney General’s Office from a Wachovia Corp, following a tip that the money was gradually being transferred overseas.
Paul Oranika
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net
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