{"id":4401,"date":"2006-05-10T00:00:00","date_gmt":"2006-05-10T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"paamco-court-appointed-receiver-sues-man-financial-in-hedge-fund-case","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2006\/paamco-court-appointed-receiver-sues-man-financial-in-hedge-fund-case.html","title":{"rendered":"PAAMCo Court Appointed Receiver Sues Man Financial in Hedge Fund Case"},"content":{"rendered":"
WEST PALM BEACH, FL (HEDGECO.NET) – Man Financial Inc., the U.S. arm of the investment firm Man Group Plc, is accused of violating the Commodity Exchange Act and the Racketeer Influenced and Corrupt Organizations Act, or RICO<\/span>, by letting the fund hide its losses in a brokerage account. Clark Hodgson, the court appointed receiver to PAAMCo claimed Man Financial concealed more than $140 million in trading losses.<\/div>\n
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Hodgson argued that Man let the Philadelphia fund\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s manager, Paul Eustace, shift losing trades to an account that wasn\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2t shown to investors. Man Financial is also being sued for fraud and racketeering along with seven of the employees, claiming that the company acted improperly in its role as a broker to failed hedge fund Philadelphia Alternative Asset Management Co. <\/div>\n

The Chicago-based unit of London\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s Man Group, the world\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s biggest publicly traded hedge fund firm, has fended off Hodgson\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s efforts to extract cash for victims of the alleged fraud. Man Financial said in an October court filing that Hodgson\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s allegations at the time were \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cgrossly improper and unsubstantiated,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d and denied that it \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cknowingly consented to, or assisted\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d any misconduct at the Philadelphia fund. <\/p>\n

Investors in Philadelphia Alternative\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s funds, which traded commodities futures and options, include TAG<\/span> Associates, a New York-based money manager that oversees about $4 billion and caters to wealthy families. Fortune Group, based in London, invested $15.5 million, according to a court filing in the Cayman Islands. Sperry Fund Management, a New York-based firm that oversees about $500 million, invested $22 million, according to Douglas Sperry Makepeace, the firm\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s president. <\/p>\n

The U.S. Securities and Exchange Commission and the Federal Bureau of Investigation are also investigating the matter, court records show. The lawsuit, and the risks to a defendant facing RICO<\/span> claims, may make a settlement more likely. <\/p>\n

Alex Akesson
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net <\/p>\n

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! <\/p>\n

Be sure to check out our sister sites. www.hedgefundlounge.com<\/a>, www.hedgefundtools.com,<\/a><\/strong> and www.hedgefundemployment.com.<\/strong><\/a> <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

WEST PALM BEACH, FL (HEDGECO.NET) – Man Financial Inc., the U.S. arm of the investment firm Man Group Plc, is accused of violating the Commodity Exchange Act and the Racketeer Influenced and Corrupt Organizations Act, or RICO, by letting the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4401","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4401","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4401"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4401\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}