We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

SEC Eyes Hedge Fund Activity On Bankruptcy Panels

Law360 (February 2, 2006, 12:00 AM EST) -- A move by the U.S. Securities and Exchange Commission against a hedge fund manager who served on WorldCom’s creditors committee may herald a crackdown against perceived fraud and abuse of insider information gleaned from bankruptcy proceedings, bankruptcy experts say.

In December of last year, the SEC unofficially began an investigation into the participation of hedge funds in bankruptcy proceedings, concerned that some fund managers may be overstating their bond holdings in troubled companies in order to secure spots on creditors committees.

The investigation was opened just...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.