Cayman Funds Hit TCW With $128M MBS Fraud Suit

Law360, New York (November 21, 2012, 6:08 PM EST) -- Two Cayman Islands-incorporated private funds sued TCW Asset Management Co. in New York state court Wednesday in a $128 million fraud and contract lawsuit against TCW over residential mortgage-backed securities issued by the investment manager in 2007.

The plaintiffs are the master funds for the Basis Pac-Rim Opportunity Fund and the Basis Yield Alpha Fund, which in May 2007 acquired a total of $28.1 million in MBS from a TCW investment vehicle, Dutch Hill Funding II Ltd. The funds claim that TCW knew that many of...
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