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Bayou settles first of 126 suits against former investors, Lawyer: ` All fictitious profits must be returned` From Bloomberg.com: Bayou Group LLC, a Connecticut hedge fund that went bankrupt after its owner was charged with fraud, settled the first of dozens of suits seeking $137.6 million from investors who withdrew money before the collapse.

Former Bayou investor UT Medical Group Inc. Basic Pension Plan will return $432,847 in phony profits and keep its $2 million investment, Bayou said in court papers filed yesterday in New York bankruptcy court. The settlement is the first in the 126 suits Bayou filed to recover money investors withdrew before it was discovered the firm was operating as a massive Ponzi scheme.

…”All fictitious profits must be returned,'' H. Jeffrey Schwartz, a Bayou lawyer, said in an interview. Full article: Source

Reuters coverage: Source

Opalesque Exclusive: Philadelphia Asset Management fraud case could haunt Man Financial float An industry insider commented to Opalesque: “I’ve watched with interest the virtual complete ignoring by the mainstream press of the severe charges being currently leveled at Ma......................

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