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.
Updated July 16, 2010 and originally published May 31, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.