Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New York Post reported.
It was initially speculated that Platinum Partners is planning to liquidate only one of its funds after the hedge fund was involved in the alleged payout of $60,000 to New York City’s Corrections Officers Benevolent Association (COBA) president Norman Seabrook in return for a $20m investment from the union.
As probe into the issue deepened, Platinum issued a letter to investors on Wednesday indicating that it has hired a former criminal prosecutor to liquidate two funds.
The letter stated that it has hired Bart M. Schwartz, the former Manhattan U.S. Attorney’s criminal prosecution division. Schwartz was taken on board to "achieve an orderly liquidation and protect investors’ interests in the funds," the Platinum letter said.
FBI raided Platinum Partners’ office
In late June, joint operatives of the Federal Bureau of Investigation (FBI) and the U.S. Postal Inspection Service raided the office of Platinum Partners in connection with the alleged kickback scandal.
Prior to the raid, Platinum announced it wo...................... To view our full article Click here
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