|"Ruling Unlikely to Recover All Loses From Fund Fraud"
August 19, 2008
Keith Dutill is quoted in this article on MF Global hedge fund manager ordered to pay almost $300 million in compensation to frauded investors.
A Canadian hedge fund manager ordered to pay almost $300m in compensation and fines after defrauding investors is unlikely to pay more than has already been recovered, according to lawyers for the receiver of the failed fund.
A US judge ordered Paul Eustace, 43, to pay $279m to compensate investors in Philadelphia Alternative Asset Management's four failed funds for losses while fining him and his company $20.8m.
But the receiver believes the $180m already recovered - including legal settlements of $19m from UBS and $75m from MF Global, the former brokerage arm of London's Man Group - is unlikely to change significantly. "We don't expect to recover additional money in the near term as a result of this order," said Keith Dutill, an attorney at Stradley Ronon, counsel to the receiver.