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As Hedge Fund Fraud Rises, Need for Greater Institutional Diligence Follows
By Brian Orsak
printWhen a former Atlanta hedge fund manager was convicted last week for running a scheme that siphoned millions of dollars from investors, it was a reminder of a recalcitrant problem and an old saw: crime follows money. That would suggest hedge funds are fast becoming a top destination for criminals. According to an August 30 survey by Stamford, Conn.-based Greenwich Associates, hedge funds constituted almost 30 percent of all fixed-income trading and 55 percent of U.S. participation in derivatives with investment-grade ratings. With that rise, "certainly, there are more cases of [hedge fund fraud] being reported," said Jeff Brenner, a...
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