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Hedge fund founder under fraud investigation

Published on 30 Oct 2009 under category: legal

The founder of the K1 hedge fund is being investigated in relation to possible fraud crimes.

Helmut Kiener is at the centre of the probe, which is looking into potential fraud and breach of duty.

This was confirmed by a spokesman for German prosecutors.

However, further details into the allegations were not released.

It is thought that several banks may have suffered financial losses due to their involvement with K1.

Barclays, JPMorgan and BNP Paribas are reported to be among those to have provided the hedge fund with credit.

Reports have indicated that Barclays has taken action to minimise any potential losses that could be incurred from K1's actions.

Elsewhere, earlier this month the Serious Fraud Organisation launched a criminal investigation into City financier and Leyton Orient Football Club vice-chairman Nick Levene.

This came after complaints from around 30 of the 45-year-old's investors who claimed that he owes them money.

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.