In addition to filing for bankruptcy, a hedge fund is suing its own investors to recover the profits that were paid out. Should investors who thought they were investing in a legitimate operation be forced to give back what those funds paid out if the payments were based on fraudulent numbers? Who is to blame?
If you are new to hedge hunds, here is an introduction I compiled last year.
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10:37 pm (reply)
Of course stolen money should be recovered from any investors who profitted from illgotten gains. Stolen property does not automatically go to whoever happens to be holding it after a heist.