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UK hedge fund managers 'still face fraud crime claims'

Published on 5 Jun 2009 under category: legal

Hedge fund managers in the UK have so far managed to avoid the majority of the civil litigation that their counterparts in the US have experienced, a source asserts.

These individuals should not ignore the real threat that claims of fraud crime can present, however, hedgefundsreview.com advises.

It states: "Investors have been looking to find redress, or at least a way of avoiding being locked into underperforming funds, where there has been misvaluation of illiquid/complex assets [and] severe underperformance."

Fraud lawyers have often been engaged in so-called shadow litigation which has resulted in settlements out of court, it claims.

The website suggests that these can have a considerable cost, while providing an effective defence can be hard-fought and expensive for the hedge fund manager.

Earlier this month, Cambridge News Online reported that accountant James Hill pleaded guilty to a number of white collar crimes including fraud committed while he worked with social club Ospreys.