SAN FRANCISCO, July 28, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP has initiated investigation of Platinum Partners LP and its flagship hedge funds, the Platinum Partners Value Arbitrage Fund and the Platinum Partners Credit Opportunities Fund, for potentially defrauding investors.
If you are invested with Platinum Partners LP hedge funds, contact Hagens Berman Sobol Shapiro LLP through our website at:
https://www.hbsslaw.com/cases/Platinum
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing Platinum@hbsslaw.com.
The Firm’s investigation is focused on whether Platinum Partners paid investors who redeemed their hedge fund positions before June 2016 with money gained from newly incoming investors – the hallmarks of a Ponzi scheme. Hagens Berman is also investigating whether Platinum misstated the value of its investments, for which there was no public market price, and whether Platinum Partners executives, including Murray Huberfeld, Mark Nordlicht, and others, may have assisted in any wrongdoing that caused harm to Platinum investors.
After posting some of the most impressive investment returns in the industry, Platinum Partners announced liquidation of its two hedge funds in a July 20, 2016 letter to investors. Platinum Partners has apparently also suspended any redemption by investors.
In June, the press reported that the Securities and Exchange Commission and the Department of Justice are both investigating Platinum Partners for bribery and fraud. The Federal Bureau of Investigation raided Platinum Partners offices, and Platinum Partners’ manager, Murray Huberfield, was arrested for bribing union officials to invest in Platinum’s funds.
“Hagens Berman has extensive experience representing investors in litigation involving Ponzi schemes like the Madoff Ponzi scheme,” said Hagens Berman partner Reed Kathrein. “We can only hope that this situation is not similar to the Madoff scheme, where we had to go after banks, auditors and other third-parties who either turned a blind eye to any wrongful conduct or aided and abetted.”
Whistleblowers: Persons with non-public information regarding Platinum Partners should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email Platinum@hbsslaw.com.
About Hagens Berman
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