LAWSUITS NEWS & LEGAL INFORMATION
Hedge Fund Scandal
King of Prussia, PA: (Feb-01-08) UBS Fund Services brought charges against MF Global Inc., formerly known as Man Financial Inc., alleging that it was owed money from a hedge fund scandal that defrauded its clients out of more than $200 million. Sources claimed that UBS Fund Services was the court-appointed receivers for a defunct King of Prussia, PA, hedge fund known as the Offshore Fund, owned by Paul Eustace, the founder, president and principal trader of the Philadelphia Alternative Asset Management Co.
Records show that the civil suit began in June 2005 when the US Commodity Futures Trading Commission brought charges against Eustace, alleging massive fraud in his operation of a hedge fund known as the Offshore Fund. In November 2005, a federal grand jury handed up an indictment charging Eustace, now of Oakville, Ontario, Canada, with commodities fraud. Eustace is currently in Canada and has not yet agreed to surrender to US authorities to face the charges.
In a recent development, sources close to the case stated that Eustace wouldn't have been able to carry out the fraud if not for the support that it got from Man Financial. As part of a settlement reached, Man Financial agreed to a $19 million payout to the Cayman Islands company to resolve claims. The settlement is said to have come on the heels of a $75 million settlement struck in December 2007 with Man Financial Inc., who served as the merchant for the hedge fund. [LAW.COM: HEDGE FUND FRAUD]
Published on Feb-2-08
Records show that the civil suit began in June 2005 when the US Commodity Futures Trading Commission brought charges against Eustace, alleging massive fraud in his operation of a hedge fund known as the Offshore Fund. In November 2005, a federal grand jury handed up an indictment charging Eustace, now of Oakville, Ontario, Canada, with commodities fraud. Eustace is currently in Canada and has not yet agreed to surrender to US authorities to face the charges.
In a recent development, sources close to the case stated that Eustace wouldn't have been able to carry out the fraud if not for the support that it got from Man Financial. As part of a settlement reached, Man Financial agreed to a $19 million payout to the Cayman Islands company to resolve claims. The settlement is said to have come on the heels of a $75 million settlement struck in December 2007 with Man Financial Inc., who served as the merchant for the hedge fund. [
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