Friday, September 9, 2005

Civil Suits Start Flowing Against Bayou Securities

There is a growing list of lawsuits against Bayou Securities, the Connecticut hedge fund management firm that has been the subject of multiple criminal investigations for alleged fraud.  The Jewish Federation of Metropolitan Chicago is suing for $4 million that is invested in the firm, while Multi-Dimension Fund, a so-called "fund-of-funds" has filed suit for its $2 million investment.  These suits come on the heels of a civil forfeiture claim filed by the U.S. Attorney for the Southern District of New York seeking to gain control of the approximately $101 million that was frozen by the Arizona Attorney General because it was related to a potential fraud (press release here).  As the lawsuits pile up, the likelihood of any (reasonably) quick resolution of the matter gets more and more distant. An AP story (here) discusses the recent lawsuits against Bayou. (ph)

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