Fraud office to investigate Cayman hedge fund

| 13/11/2009

(Bloomberg): The UK Serious Fraud Office has opened a criminal investigation into the hedge fund firm Dynamic Decisions Capital Management Ltd. after receiving complaints about its investment activities. Dynamic Decisions’ main hedge fund is being liquidated by court-appointed administrators in the Cayman Islands after investors raised questions about some of its holdings. The fund’s liquidators said it was separately investigating corporate bonds purchased late last year. The SFO, which prosecutes white-collar crime, opened the probe into the Dynamic Decisions fund after the matter was referred to it by the U.K. Financial Services Authority.


Both offices had received complaints, the SFO said today in a statement.

“The FSA would refer a case to the SFO where there were broader concerns than just insider trading or market abuse, where there are concerns about fraud,” said Ian Mason, a former enforcement official at the FSA who is now a partner at London- based Barlow Lyde & Gilbert. Mason isn’t involved in the case.

Grant Thornton LLP said it was named the fund’s official liquidator by the Grand Court of the Cayman Islands in May. The unaudited net asset value of the master fund was $550 million as of Dec. 31, Grant Thornton sai

Go to article

Print Friendly, PDF & Email

Category: Business

About the Author ()

Comments (8)

Trackback URL | Comments RSS Feed

  1. John Evans says:

    Don’t get too excited….

    The SFO is under-resourced, under-funded and lacks the expert staff needed to deal with sophisticated fraud (and I am not saying that anyone involved in the investigation reported by the Independant was involved in any kind of fraud or other wrongdoing).

    To compound that, based on the unexpected collapse of major banks in the UK, I don’t think the FSA could find it’s proverbial backside with both hands.

    So what will happen? Probably a repeat of Operation Tempura, loads of coppers thrashing around at great expense only to come up with nothing.

    I hope that’s being overly cynical but if not you read it here first.

  2. Anonymous says:

    The ‘grinches’ that stole christmas for redistribution of wealth. Money is definitely the root of all evil! *Note, I didn’t say the love of money, because they not only love money, but they have all the money.

  3. Animosity says:

    This looks like a copy of the T & C investigation.

    I think the wheels of the  UK takeover is starting to turn and they are getting every opportunity they want to stake their claims.

    It just might be what we need at this time to stop us ending up like Cuba, Venezuela, Nicaragua and most recently Honduras.

  4. Anonymous says:

    This is a fine example of why Cayman should not just blindly "roll out the red carpet" to foreign investors as the premier and his gang seem to be doing. Attracting bad business is definately not good for Cayman and before Bush went off peddling around Europe and elsewhere he should have sorted out the details of what really is being offered by Cayman and by what safe and legal means.

    I listened to Sherry Bodden, CG, Mark and others on the cross talk shows yesterday. trying to do damage control it seemed.My suggestion is that  their premier needs to have has a clear understanding of the initiatives being offered and that what he is saying on his peddling tour is not contradictory to what they are now trying to convince people of. Why wasn’t the people of this country properlyinformed of the details of what is to take place before Mac took off peddling? The misinterpretation etc that they claim has taken place is because of the way this has been handled; it is an insult to the Caymanian people. I for one am not at all convinced, and will not be, until I see an official document from the government setting out the details of their directives to ther departments and boards.





    • Captain Nemo says:

      "Why wasn’t the people of this country properlyinformed of the details of what is to take place before Mac took off peddling?"  Aside from the ghastly grammar, you really need to understand how a representative democracy works.

      • Anonymous says:

        And, aside from exposing your own ignorance Captain Nemo, you have said little. I, and many others, have enough intelligence to see beyond the gramatical errors and quite understand the meaning of that individual’s comments. He/she is correct in that the premier should have provided the local populace with the details of these new initiatives before making offers overseas. It is called good sense and respect dear.

    • Anonymous says:

      Well said! I could not agree with you more. When I read some of the things that that man was saying to prospective investors in the U.K. I felt like my birthright was being peddled away just as you described. What is happening to this country is disgraceful and scary.

  5. Auditjudge says:

    Yet another Cayman Hedge Fund fraud. I just wonder if again there are local directors making a bundle of money and not knowing what they are doing. This happens time and again and CIMA does nothing. Time to use the regulations as they were intended to be used.