Hays has extensive experience in liquidating Hedge Funds in enforcement proceedings brought by the Securities & Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC). We are most often engaged to take over the Hedge Fund, run its complete operations, handle all investor relations, investigate, recover and secure all assets, monetize the assets, and distribute the proceeds to investors. We focus our efforts to ensure that investors realize the maximum recovery possible.
Following are several examples of cases where Hays has liquidated assets and recovered funds for investors in failed Hedge Funds.
Select Hedge Fund Liquidations:
SEC v. Parish Economics
The case involved a fraudulent securities offering with $110 million allegedly invested in various hedge funds and investment pools. Appointed as Receiver in the United States District Court for South Carolina, we liquidated assets including real estate, cars, watches, pens, artwork, real estate investments and life insurance policies, and recovered significant funds from third parties. The case has received extensive local and national media coverage. The TV show American Greed aired a story on the case in February of 2009.
CFTC v Lake Dow Capital, LLC
Appointed as Receiver in the United States District Court in the Northern District of Georgia after the CFTC brought a $25 million Hedge Fund fraud case. The firm traced and recovered funds (both domestically and internationally). A major issue in the case was the segregation of IRA accounts and traditional investment accounts. The case was the subject of an article in the June 2006 issue of Business Week.
CFTC v. Cornerstone Capital Management, LLC
Appointed as Receiver in the United States District Court after this Hedge Fund fraud case was brought by the CFTC. We traced funds, recovered assets and made a distribution to investors.
CM Vaughn, LLC – United States Bankruptcy Court
Hays was engaged as Accountants and Financial Advisors to the Trustee of the bankruptcy estate of a hedge fund after the Debtor filed bankruptcy as investors sought to withdraw funds. In this role, the firm prepared a funds tracing database and recovered and liquidated assets. The case was the subject of a TV consumer investigator’s report on WSBTV.
Due to the firm’s experience with hedge funds, we are often sought out by the press for comment. Most recently we have been quoted in The Wall Street Journal and Forbes.com, Bloomberg.com and Wired Magazine (coming out in April) in connection with the Madoff investment scheme.