Bayou Files $30M Suit Against Former Investor

Law360, New York (September 13, 2006, 12:00 AM EDT) -- Bankrupt hedge fund Bayou Management LLC has filed a $30 million lawsuit against one of its investors, looking to recoup investments made and profits earned before Bayou collapsed.

Jeff Marwil, the U.S. Trustee representing Bayou in its Chapter 11 case, has filed a suit against private investment firm Sterling Stamos, in hopes of reclaiming the profits realized by the fund.

Marwil filed the suit on grounds of fraudulent conveyance, meaning that funds were transferred in order to deliberately defraud creditors. The suit claims that Bayou may...
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