Hedge Fund Bayou Group Files For Chapter 11

Law360, New York (May 30, 2006, 12:00 AM EDT) -- Embattled hedge fund Bayou Group has sought bankruptcy protection in an effort to recover funds for defrauded investors, the fund said in its Chapter 11 petition.

Bayou also filed several lawsuits against former investors who the fund claims benefited from the alleged fraud perpetrated by Bayou’s founders, allowing them to reap fictitious profits.

Jeff Marwil, the independent receiver for Bayou, said that both the Chapter 11 case and the additional suits will hopefully recover funds from investors that received payment for their lost funds on behalf...
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