Bear Stearns To Pay Failed Hedge Fund $160M

Law360, New York (February 15, 2007, 12:00 AM EST) -- A bankruptcy judge ordered Bear Stearns Corp. on Thursday to repay the estate of Manhattan Investment Fund Ltd. $160 million, finding that the investment bank overlooked fraudulent money transactions just months before the hedge fund fell into bankruptcy.

Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York had issued a statement on Jan. 9 that Bear Stearns learned of fraudulent money transfers made by the hedge fund’s owner, but did not try to stop the deals.

Convicted felon Michael Berger...
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