Man Financial wins bid for Refco

Discussion in 'Wall St. News' started by Ebo, Nov 10, 2005.

  1. Ebo


  2. If Roger's fund customers get screwed here it stinks. I hope Jimmy gets a fair hearing in court. He shouldn't have to go that far. Bad news for all of us IMHO.
  3. Does anyone know how much Jimbo has personally invested in his funds?
  4. Choad


    Wasn't Man recently sanctioned for some sleazy "buried" debts from a failed HF?

    Kind of funny - birds of a feather... :p
  5. Here's an even better question . . .

    Does anyone know if he actually trades those funds, or is his name simply used by Beeland for marketing purposes and the money gets farmed out to various CTA's.
  6. Apex, learn to read: Roger's fund is an index fund: Rogers has fixed the included commodities and also the weighting formula. Try reading Roger's fund's prospectus. Don't bother; since you don't know how to read, find a someone to read it to you.
  7. Cheese


  8. They haven't been sanctioned ...yet. But there is an ongoing investigation.
  9. just21


    Man says to buy Refco’s brokerage unit for $282m
    NEW YORK, Nov 10 (Reuters)

    RefcoMan Group, the world’s largest listed hedge fund firm, said on Thursday it agreed to buy Refco‘s regulated futures brokerage for $282 million.

    Man will take on an estimated $37 million of liabilities and anticipates the acquisition will enhance underlying earnings per share before integration costs in the financial year starting in April 2007, it said in a statement.

    The value of the tangible assets acquired is estimated to be approximately $115 million, Man said.
  10. Choad


    Sorry. No sanctions yet. Here is some of the complaint:

    The Ontario Securities Commission has launched an investigation into an Ontario hedge fund manager who faces fraud allegations in the United States.

    The OSC is the latest regulator to become involved in the widening scandal surrounding the collapse of Philadelphia Alternative Asset Management Co., a hedge fund company run by Paul Eustace from his home in Oakville, Ont. The $230-million (U.S.) fund, known as PAAM, was based in Philadelphia and specialized in a complex type of commodity trading.

    The U.S. Securities and Exchange Commission has also begun an informal inquiry into allegations that the U.S. brokerage arm of Man Group PLC, one of the world's largest hedge fund companies, helped PAAM hide $175-million in losses. Man Group's subsidiary, Man Financial Inc., has denied any wrongdoing and said it will co-operate fully with the SEC.

    The U.S. Commodity Futures Trading Commission, or CFTC, has alleged in court documents that Mr. Eustace defrauded investors.

    The CFTC alleges he did this by telling investors his commodity trading pool was increasing in value when, in fact, it had lost more than $140-million from February, 2005, to May. The CFTC alleged the fraud dates back to 2001 and that Mr. Eustace enticed clients to invest in one fund that did not exist by showing them fictitious monthly trading statements. He also allegedly co-mingled client money with his own accounts.

    Mr. Eustace, 40, was not available for comment. His lawyers in the U.S. and Canada said he will defend himself against the allegations and that he is co-operating with the CFTC.

    Mr. Eustace recently filed for personal bankruptcy in Ontario. In documents filed in court as part of the bankruptcy, Mr. Eustace included in his list of assets $5.3-million (Canadian) in securities, nearly $40,000 in cash and a $54,000 Porsche. His liabilities consisted of $5,000 owed to BMO MasterCard and $28.6-million owed to a group of American investors in a PAAM fund called the Option Capital Fund.

    Last week, an Ontario court ordered the trustee administering the bankruptcy to turn over more than a dozen of Mr. Eustace's computers to the OSC. "We have an interest in the computers," said OSC enforcement director Michael Watson. Mr. Watson declined further comment. Sources close to the commission confirmed the OSC has launched an investigation into the hedge fund company.

    Mr. Eustace is believed to be Canadian and while most of his clients were Americans, several Canadians also sank money into PAAM.

    The hedge fund company has been put into receivership in the U.S., and the receiver, Clark Hodgson, is trying to track down assets on behalf of investors.

    In a recent court filing in the U.S., Mr. Hodgson alleged that another key player in the scandal is Thomas Gilmartin, a senior vice-president at Man Financial. Mr. Hodgson alleged that Mr. Gilmartin, who worked in New York, handled trades for Mr. Eustace and was a part owner of PAAM.

    He also alleged Mr. Gilmartin doctored some trading records in order to boost the returns of some of PAAM's funds and that he covered up huge losses. Mr. Gilmartin was recently placed on administrative leave by Man Financial.

    Mr. Hodgson has filed a contempt motion against Man Financial alleging the company has violated an earlier court order by withholding key documents.

    "Despite the suspicious trades between accounts, the unusual transfers between accounts and the back-dating of transactions that occurred at Man Financial, Man Financial has produced no records justifying why these trades, transfers and back-dated transactions took place," he alleged in a court filing. "The documents produced to date suggest that Man Financial had knowledge of the conduct described [by the receiver] and consented to and assisted in that conduct."
    #10     Nov 10, 2005