Highland Capital Accuses Ex-PE Head Of Shady Trades

Law360, Dallas (January 17, 2014, 10:14 PM EST) -- Highland Capital Management LP’s chief compliance officer on Friday testified in a Dallas state court trial that the hedge fund’s former private equity chief set up an unethical compensation scheme that violated prohibitions on self-dealing and his duties to clients.

Highland compliance officer Thomas Surgent said after former private equity division head Patrick Daugherty resigned from the firm in 2011, an investigation turned up evidence of self-dealing in an incentive vehicle Daugherty set up to reward members of Highland’s private equity team. Surgent said evidence that...
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