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...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.