( www.businessweek.com ) – Dizzying growth and an absence of regulation have spawned a series of scandals. Here’s why it happened — and what’s being done
Hedge-fund scandals are piling up faster than autumn leaves on suburban lawns. In late September, the founders of Bayou Management, a $400 million Connecticut hedge-fund firm, pleaded guilty in federal court to criminal fraud. Two weeks later, the Securities & Exchange Commission filed fraud charges against the founder of the Wood River hedge funds (see BW, 10/13/05, “Another Fishy Hedge Fund”).
