Komfie Manalo, Opalesque Asia: Platinum Partners, the $1.3bn hedge fund in the middle of a kickback scandal and being investigated by Federal authorities for possibly running a Ponzi scheme, has used an outside valuation firm tied to a hedge fund accused of running, well, a Ponzi scheme.
A report by The Post said that records showed Platinum Partners has hired Sterling Valuation Group as its valuation firm, the same company used by Alphonse "Buddy" Fletcher, whose hedge funds went bankrupt in 2012.
Fletcher’s hedge fund was described by a court-appointed bankruptcy examiner as bearing "many of the characteristics of a Ponzi scheme" for reportedly inflating the value of its investments.
Last week, it was learned that Federal authorities have initiated investigation into whether Platinum has inflated the value of its investments. Reports have indicated that prosecutors suspect that the fund’s investments were worth less than what Platinum has told its investors.
Last week, Federal prosecutors in Brooklyn said that part of the probe is focused on whether the value of some of the hedge fund’s hard-to-assets investments were inflated.
In June, prosecutors raided Platinum Partners, hedge fund run by Murray Huberfeld and Mar...................... To view our full article Click here
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