Trial Begins For Ex-Fund Boss Accused Of Asset Inflation

Law360, New York (June 10, 2013, 8:41 PM EDT) -- Former London-based hedge fund manager Michael Balboa overvalued the $850 million hedge fund he headed by inflating the value of its illiquid assets, federal prosecutors said Monday, kicking off what is expected to be a three-week fraud trial.

Assistant U.S. Attorney Chi T. Steve Kwok told jurors that Balboa, who managed the now-defunct Millennium Global Emerging Credit Fund, misled investors about the value of Nigerian investments the fund had.

The alleged lies made the fund look bigger and more successful than it actually was and increased...
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