Hedge Fund Execs Garner $35M Award For Ex-Partner's Fraud

Law360, Wilmington (May 22, 2012, 7:20 PM EDT) -- A Delaware judge awarded over $35 million in damages on Tuesday to two hedge fund executives for a massive accounting fraud perpetrated by their former partner at Paron Capital Management LLC.

In a 36-page Delaware Chancery Court opinion, Vice Chancellor Donald F. Parsons held James D. Crombie, Paron’s former manager, responsible for the loss of employment opportunities and other damages suffered by his partners after regulators cracked down on the hedge fund, which operated around a futures trading program developed by Crombie.

“Like so many investment...
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