Vega Fund To Be Investigated For Fraud
by Stewart Douglas
Story link: Vega Fund To Be Investigated For Fraud
A private hedge fund run by a former investment banker at UBS has today been opened to legal challenge of allegations of fraud and wrongful trading in the run up to its sensational loss of 75% of its value in one trading day.
The announcement comes after disgruntled investors have lodged a complaint with an industry arbitrator after the hedge fund lost spectacularly under the management of Sample & Cross Capital, run by former UBS employee David Cross.
The news comes as a further blow to the credibility of the private equity and investment industry after employees from several notable investment houses were today arrested in connection with money laundering practices, which can only hamper investor confidence in the long run.
Market analysts today have predicted that the level of losses could total in excess of $100 million of investors’ money, which it is thought may eventually be attributed to failings on the part of the hedge fund and its management.
Whilst there are as of yet no founded irregularities, the investors concerned are urging an independent arbitrator to examine the investment practices engaged, on the basis that some fraud had been committed on the fund’s investors.
The fund in question is the now defunct Vega Opportunity Fund which the asset manager closed mid-August in the wake of the extent of the losses suffered, which investors have alleged was as a result of unscrupulous investment practices.
It is thought that the matter will now be investigated by the arbitrator in order to uncover the reasons behind the failings in the fund, and whether or not there was any fraud at play. Sample & Cross were today unavailable to comment on the situation.
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