Platinum Boss Said Fear Would Tame Investor Ire, Jury Hears
Law360, New York (May 28, 2019, 8:15 PM EDT) -- A former chief financial officer for Platinum Partners on Tuesday told a New York federal jury that Platinum co-founder Mark Nordlicht told him that "mutually assured destruction" would keep aggrieved investors from ratting the hedge fund manager out to regulators, despite Platinum's inability to make timely repayments.
Daniel Mandelbaum, who was Platinum's CFO for about 9 1/2 months in 2014 and 2015, said he spoke to Nordlicht amid a liquidity crisis that year at Platinum's signature fund, Platinum Partners Value Arbitrage Fund.
Mandelbaum testified that he was protesting Platinum's practice of preferentially repaying certain investors — including insiders and those with...
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