SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Girard Gibbs LLP has opened a fraud investigation into Platinum Partners LP on behalf of investors. Specifically, the firm is investigating two Platinum Partners hedge funds: the Platinum Partners Value Arbitrage Fund and the Platinum Partners Credit Opportunities Fund.
The firm is investigating:
- Whether Platinum Partners operated as a Ponzi scheme by paying investors who redeemed their hedge fund positions with money obtained from later investors;
- Whether Platinum Partners overstated the value of its investments; and
- Whether Platinum Partners’ executives may have assisted in any wrongdoing that caused harm to Platinum Partners investors.
Platinum Partners Liquidates Hedge Funds Despite Good Returns
In a July 20, 2016 letter to investors, Platinum Partners announced that it would be liquidating its two hedge funds, though Platinum Partners had posted some of the best returns in the industry. It also appears that Platinum Partners has suspended investor redemptions.
Dept. of Justice, SEC, & FBI Investigate Platinum Partners
Recently, both the Department of Justice and the Securities and Exchange Commission reportedly opened investigations of Platinum Partners for bribery and fraud. The Wall Street Journal recently reported that federal agents are not only investigating alleged bribery at the fund, but are investigating the fund for fraud. In addition, the FBI raided Platinum Partners’ offices, and Platinum Partners’ former manager, Murray Huberfeld, was arrested for bribing New York union officials in exchange for a $20 million investment in Platinum Partners’ funds.
About Girard Gibbs
Girard Gibbs is a national firm that has successfully represented investors from all over the world who have fallen victim to Ponzi schemes and securities fraud. Currently, we are litigating a Ponzi scheme class action against Jay Peak, Inc. related to a scheme that may have resulted in the misappropriation and misuse of more than $200 million in investor funds.
We have successfully represented our clients against Sallie Mae, Lehman Brothers, Peregrine Financial Group, and others.
Contact us for a free consultation
Our attorneys have recovered millions of dollars on behalf of investors who have lost money as a result of corporate fraud, breaches of fiduciary duty, and other financial wrongdoing. To speak with an attorney about the Platinum Partners Investigation, call (415) 544-6280 or contact Adam Polk at aep@girardgibbs.com.
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