Category Archives: News

Another Sentence Handed Down In Bayou Fiasco

Following closely on the heels of the 51-month sentence handed down to James Marquez (reported below), Daniel Marino, Bayou’s former CFO, was sentenced this week to 20 years in prison. Marino had entered a guilty plea to conspiracy and three … Continue reading

Posted in Bayou Management, Daniel Marino, Fraud, News | 1 Comment

Hedge Fund Founder Gets 51-Month Sentence

James G. Marquez, the founder of several Bayou Management hedge funds, was sentenced yesterday by a federal district judge to 51 months in prison, followed by two years of supervised release. He must also pay close to $6.26 million in … Continue reading

Posted in News, Overhedged | Tagged

Supreme Court Limits Fraud Claims Against 3rd Parties

From the wonderful crew at the SCOTUS Blog: “The Supreme Court, in one of the most important securities law rulings in years, decided Tuesday that fraud claims are not allowed against third parties that did not directly mislead investors but … Continue reading

Posted in News, Overhedged | Tagged

Basis Capital seeks Court Assistance for Redemptions

More trouble for Basis Capital. Yield Alpha Fund’s Sister, Basis Aus-Rim Diversified Fund, has also lost about half its value since the credit crunch began. Basis recently announced they will be seeking help from the courts regarding redemptions. In a … Continue reading

Posted in News, Overhedged | Tagged | 2 Comments

Merrill Lynch sued over CDOs and Hedge Fund Deals

Merrill Lynch was sued yesterday in the United States District Court for the Southern District of New York (SDNY). The plaintiffs in Kosseff v. Merrill Lynch & Co., Inc., et al. are seeking damages from the collapse of the CDO … Continue reading

Posted in News, Overhedged | Tagged , | 1 Comment

Hedge Fund Founder Sentenced for Fraud

Michael Mendelson, a founder of Portus Alternative Asset Management Inc., was sentenced to two years in prison Monday by a Canadian court. The sentence was part of a plea deal under which prosecutors dropped additional counts of fraud and money … Continue reading

Posted in News, Overhedged | Tagged

Amaranth v. JP Morgan Chase

The Amaranth complaint against JP Morgan Chase is a fascinating tale of corporate intrigue and sabotage. Of course, we have a long way to go before we see if the allegations hold up. I am summarizing the complaint here. In … Continue reading

Posted in News, Overhedged | Tagged ,