{"id":18202,"date":"2010-10-11T06:53:11","date_gmt":"2010-10-11T10:53:11","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=18202"},"modified":"2010-10-12T08:15:48","modified_gmt":"2010-10-12T12:15:48","slug":"hedge-fund-bankruptcy-trustee-sues-investment-firms","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2010\/hedge-fund-bankruptcy-trustee-sues-investment-firms.html","title":{"rendered":"Update: Hedge Fund Bankruptcy Trustee Sues Investment Firms"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/10\/118530-600-0-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-18203\" title=\"Thomas Petters\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2010\/10\/118530-600-0-2.jpg\" alt=\"\" width=\"220\" height=\"164\" \/><\/a>New York (HedgeCo.net) &#8211;\u00a0The trustee for\u00a0failed\u00a0hedge fund Petters Group, Douglas Kelley, has sued the Epsilon-Westford\u00a0funds founded by Steve Stevanovic, according to Bloomberg.<\/p>\n<p>The bankruptcy trustee is seeking to recoup over $3.2 billion to cover the\u00a0company&#8217;s\u00a0debt, Bloomberg said,\u00a0&#8220;Seventeen funds affiliated with the financier\u2019s Westford Investment Management LLC and Epsilon Investment Management LLC were named as defendants in the complaint filed by Kelley.&#8221;<\/p>\n<p>&#8220;We terminated our relationship with Petters a full 18 months before it became known\u00a0that Petters was involved in fraudulent activity.&#8221; an attorney for the Epsilon-Westford funds said in a statement, &#8220;We did so because we elected to invest\u00a0our capital in other enterprises, not because we believed or had cause to believe that\u00a0the Petters enterprises were engaged in fraudulent activities.&#8221;<\/p>\n<p>Petters and his hedge fund, Petters Group Worldwide LLC was convicted in December 2000, of all 20 criminal counts, adding up to a $3.5 billion fraud.<\/p>\n<p>\u201cThe defendant\u2019s fraud is staggering and unprecedented in size and impact on victims and the community,\u201d prosecutors said of the case back in March of this year.<\/p>\n<p>The complaint\u00a0alleges the defendants knew or should have known the investments were fraudulent, according to Reuters.\u00a0\u201cStevanovich received millions in false profits through his active and direct involvement in the Petters Ponzi scheme.\u201d<\/p>\n<p>Petters has stated that he plans to fight to be released from custody and maintains his innocence.<\/p>\n<p>Alex Akesson<br \/>\nEditor for <a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.Net<\/a> is a premier <a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\">hedge fund database<\/a> and community for qualified and accredited investors only. Membership in <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.net) &#8211;\u00a0The trustee for\u00a0failed\u00a0hedge fund Petters Group, Douglas Kelley, has sued the Epsilon-Westford\u00a0funds founded by Steve Stevanovic, according to Bloomberg. The bankruptcy trustee is seeking to recoup over $3.2 billion to cover the\u00a0company&#8217;s\u00a0debt, Bloomberg said,\u00a0&#8220;Seventeen funds affiliated with [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16005,11,3],"tags":[],"class_list":["post-18202","post","type-post","status-publish","format-standard","hentry","category-developing-stories","category-hedge-fund-fraud","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/18202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=18202"}],"version-history":[{"count":5,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/18202\/revisions"}],"predecessor-version":[{"id":18206,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/18202\/revisions\/18206"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=18202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=18202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=18202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}