Hedge Fund Paramount Faces Investor Fraud Suit

Law360, New York (October 6, 2009, 5:34 PM EDT) -- Following on the heels of a fraud suit launched by the U.S. Securities and Exchange Commission, a group of investors has sued Paramount Partners LP, claiming the hedge fund's founder and three affiliated financial advisers duped investors into believing the fund's “phantom” assets were racking up profits.

The 28 plaintiffs, who all purchased limited partnerships in the firm, allege that Paramount founder John W. Lawton misappropriated funds, and their investment advisers wrongly hailed the security of investing with him, in an amended complaint filed Monday in...
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