A battle of hedge funds, and their competing interests, has erupted in Puerto Rico over the last few weeks. This week, hedge funds Tilden Park Capital Management LP, Whitebox Advisors LLC, Merced Capital LP, and GoldenTree Asset Management LP filed a motion asking a court to impose a legal stay…
A San Francisco-based hedge fund advisory firm has agreed to settle U.S. Securities and Exchange Commission charges alleging its failure to notice that one its employees was engaged in insider trading. Artis Capital Management will disgorge the more than $5.1M in illicit rating profits made by employee Matthew G. Teeple…
NY Hedge Fund to Pay $413M to Settle Civil and Criminal Charges Over FCPA Violations Och-Ziff Capital Management Group has settled both criminal and civil charges accusing the New York hedge fund of paying bribes to obtain business in Africa. This is the first hedge fund to face punishment over…
A number of hedge funds with Puerto Rico general obligation bonds want a court to stop the U.S. territory from using its sales-tax revenue to pay back other debt. Those hedge funds say that such an action is a violation of the Commonwealth’s constitution. To date, the Commonwealth owes nearly…
The Wall Street Journal and other media are reporting that Theranos is now the defendant of a securities fraud lawsuit brought by one of its major investors. The plaintiff is San Francisco hedge fund Partner Fund Management, which is one of the blood testing company’s largest financial backers. Partner, which…
Former SAC Trader To Close Down Hedge Fund In The Wake of Losses Andrew Bazarian will close down his Pinyin Capital Management Hong Kong Ltd.’s hedge fund in the wake of massive losses sustained by the fund, a lack of investor interest, and the exodus of Blue Pool Capital, its largest…
Investment Advisor Firm Accused of Paying Off Terminally Ill Patients to Commit Fraud The SEC has filed fraud charges against Donald Lathen and his Eden Arc Capital Management. Lathen is accused of recruiting at least 60 individuals who had less than six months to live and agreeing to pay them…
The U.S. Securities and Exchange Commission has filed a financial fraud lawsuit against Nicholas M. Mitsakos and his Matrix Capital Market. Mitsakos and his investment advisory firm are accused of pretending that they managed millions of dollars in assets. They allegedly stole about $800K from the first client that invested…
With the trading volume for weekly short-term options having grown, our securities fraud law firm wanted to remind investors that there are risks involved in these investments. Weeklys are listed on a Thursday and expire the next Friday. Their popularity is due in part to their lower cost compared to…
A group of hedge funds that are holding Puerto Rico debt are suing the U.S. territory and Governor Alejandro García Padilla. Monarch Alternative Capital, Aurelius Capital Management, Stone Lion Capital Partners, Covalent Capital Partner, Aurelius Capital Management, Fundamental Credit Opportunities, and a number of other funds claim that Puerto Rico…