Platinum Partners execs charged in $1B fraud – USA TODAY

NEW YORK  Platinum Partners hedge fund founder Mark Nordlicht and six others from the New York City-based hedge fund were arrested Monday on charges stemming from an estimated $1 billion fraud, federal prosecutors said.Along with Nordlicht, David Levy, the company’s co-chief investment officer, and Uri Landesman, the former president of Platinum’s signature fund, were among those expected to be charged with securities fraud, investment adviser fraud and conspiracy, Brooklyn U.S. Attorney Robert Capers office said.Capers was scheduled to hold a news conference on the case later Monday morning with officials of other federal agencies, including the Securities and Exchange Commission, to announce the unsealing of a fraud indictment.Founded in 2003, Platinum Partners is an investment management group that has had more than $1.3 billion in assets under management. The Firm manages multiple funds in a variety of uncorrelated strategies and sectors.In July, the company told investors it had hired an independent monitor to oversee the liquidation of its two principle hedge funds as U.S. authorities pursued investigations of the business, Reuters reported.Platinum Partners also said in July it would likely to return the assets of its largest and oldest fund to clients as the result of the the arrest of a longtime associate on charges he arranged a $60,000 bribe in an effort to land an investment from the New York City correction officers union, the report said.In August, Platinum Partners Value Arbitrage Fund (International) Limited and Platinum Partners Value Arbitrage Fund L.P. were placed into liquidation and provisional liquidation, respectively, under orders issued by the Grand Court of the Cayman Islands, according to the company’s website.

Source: Platinum Partners execs charged in $1B fraud

Tagged , , , , ,