Current news for this fund:
Lancelot Investment Management - hedge fund ponzi scheme?
Count of distinct funds: 5
FINalternatives reports that five hedge funds under Lancelot Investment Management are filing for bankruptcy due to beign defrauded by Tom Petters, the fund manager. According to the article:
Apparently, the funds were forced into bankruptcy as the fund creditors "won't release their assets".
Regarding the allegations of fraud against Petters:
Petters is accused of defrauding victims of some $3 billion, and faces federal charges of mail and wire fraud, money laundering and obstruction of justice.
An by the Star Tribune elaborates on the allegations against Petters, noting that his alleged fraudulent activities occurred over some thirteen years.
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Important: This fund is on our list of hedge funds that have "imploded" (see also ailing lenders). However, please note that "imploded" is a somewhat subjective. The "imploded" list contains hedge funds (or other unregulated and autonomous speculative investment funds) which have gone through some sort of permanent adverse change. This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid mark-downs in net asset value; or abnormal "bail-out" by corporate parents or peers in order to avoid write-downs and provide liquidity. The funds are of any type and sector.