An advisor on investing in hedge funds cannot be sued for securities fraud for recommending a fund that later turned out to be a Ponzi scheme, the U.S. Court of Appeals for the Second Circuit has ruled. The circuit found that requirement of scienter was not met in the pleadings against an advisor who steered a client to Samuel Israel III and other founders of the Bayou funds group that later bilked investors out of more than $400 million. The case has been closely watched by legal observers who say it could influence the defense used by feeder funds that are sued for funneling their investors' money to Bernard L. Madoff.
July 16, 2009 at 12:00 AM
1 minute read
An advisor on investing in hedge funds cannot be sued for securities fraud for recommending a fund that later turned out to be a Ponzi scheme, the U.S. Court of Appeals for the Second Circuit has ruled.
The circuit found that requirement of scienter was not met in the pleadings against an advisor who steered a client to Samuel Israel III and other founders of the Bayou funds group that later bilked investors out of more than $400 million.
Presented by BigVoodoo
The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.
Law firms & in-house legal departments with a presence in the middle east celebrate outstanding achievement within the profession.
The premier educational and networking event for employee benefits brokers and agents.
Atlanta s John Marshall Law School is seeking to hire one or more full-time, visiting Legal WritingInstructors to teach Legal Research, Anal...
Shipman is seeking an associate to join our Labor & Employment practice in our Hartford, New Haven, or Stamford office. Candidates shou...
Evergreen Trading is a media investment firm headquartered in NYC. We help brands achieve their goals by leveraging their unwanted assets to...
MELICK & PORTER, LLP PROMOTES CONNECTICUT PARTNERS HOLLY ROGERS, STEVEN BANKS, and ALEXANDER AHRENS
