Chidem Kurdas
Hedge funds lose their clients and tend to shut down when they are investigated by government agencies or face civil lawsuits. Raj Rajaratnam’s Galleon Group and Arthur Samberg’s Pequot Capital, accused of abusing inside information, come to mind. Both long-time managers closed shop. (more…)
Chidem Kurdas
A central claim of the lawsuits brought by Irving Picard, the Madoff bankruptcy trustee, is that his various targets knew of the fraud, should have known or in some cases could have known. You start noticing how murky these allegations are when you talk with people who had dealings with Mr. Madoff. (more…)
Chidem Kurdas
Financial fraud typically comes to light because someone complains. But as Harry Markopolos found out when he went to the US Securities and Exchange Commission with evidence against Bernard Madoff, complaining may not put an end to a scheme. And then people say you’re a joke! (See below.)
Indeed, the whistleblower’s lot is typically not a happy one, in the experience of Sherron Watkins, the accountant who detected that little accounting issue at Enron. (more…)
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