FinRep - Knowledge by Investment Advisor is Needed to Prove Fraud in Investment into Failed Fund

The New York Law Journal summarized a recent opinion in a case involving the collapse of hedge fund Bayou Accredited. In the 2nd Circuit case, investment advisor Hennessee Group LLC was sued by an investor for recommending the investment, here, over $1 million. The court dismissed the securities fraud suit, noting that the plaintiffs had not alleged that the advisor knew of the underlying fund's fraud or that any facts created a strong inference that the advisor had an actual intent to relay false or misleading information about the hedge fund. Posted on August 03, 2009
FinRep