Offshore Hedge Fund, Receiver Settle For $19M

Law360, New York (February 1, 2008, 12:00 AM EST) -- For $19 million, a Cayman Islands company has settled claims lodged by the court-appointed receiver of a defunct Pennsylvania-based hedge fund that its founder conned investors out of $200 million that he then transferred offshore.

Under the terms of the settlement, filed Wednesday in the U.S. District Court for the Eastern District of Pennsylvania, UBS Fund Services (Cayman) Ltd. will pay the Philadelphia Alternative Asset Management Co. LLC's receiver ad litem $15 million in damages, to be distributed among allegedly shammed investors, and $4 million in...
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