Scandal-ridden Bayou (Domestic) Hedge Funds said Tuesday it filed for Chapter 11 bankruptcy protection and will seek recoveries of $450 million for defrauded investors. Connecticut-based Bayou filed lawsuits against some former investors, accusing them of receiving “fictitious profits” in a scheme to inflate the value of the company’s funds. Last year, the former Bayou chief executive and financial head both pleaded guilty to related charges of fraud.
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Posted on Wednesday, May 31st, 2006. Filed under: Business Law, Law Misc
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