SAN FRANCISCO, Oct. 25, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP alerts Platinum Partners LP Funds investors that Platinum Partners’ flagship hedge fund filed for bankruptcy. Hagens Berman continues its investigation into potential fraudulent conduct by the Company.
If you are invested in Platinum Partners LP hedge funds, including Platinum Partners Value Arbitrage Funds (domestic or Cayman Islands) or Platinum Partners Credit Opportunities Fund, contact Hagens Berman 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.
On August 24, 2016, Reuters reported that a Cayman Islands judge appointed an insolvency specialist to liquidate the assets of Platinum Partners Value Arbitrage Fund (International) Limited. The Reuters article comes on the heels of reports that both the Securities Exchange Commission and the Department of Justice are investigating Platinum Partners.
On October 18, 2016, the flagship fund of Platinum Partners filed for chapter 15 protection, the section of the bankruptcy code that deals with international insolvency. The insolvency specialist assigned to the case allegedly stated that they are conducting “emergency triage” to stave off Platinum’s collapse, citing liquidity problems, concurrent investigations by the SEC and DOJ, and hundreds of millions of dollars in unpaid bills.
In an ongoing suit against Platinum Partners, a New York state court judge stated to Platinum’s counsel, “I haven’t seen any proof from you then that the fund is worth over a billion dollars. As far as I know, the fund is worth five cents.” Platinum Partners investors claim they have not received agreed-upon redemptions for over a year, raising issues as to how Platinum Partners is utilizing investor money.
Hagens Berman’s investigation is focused on whether Platinum Partners paid investors who have been attempting to redeem their hedge fund positions since 2015 with money gained from newly incoming investors – the hallmarks of a Ponzi scheme. The Firm is also investigating whether Platinum falsified the liquidity and value of its funds’ investments, for which there was no public market price. The investigation also focuses on related Platinum entities and persons, including Platinum Credit Holdings LLC; managing member Mark Nordlicht; Platinum Credit Management LP; Platinum Partners Value Corp.; and Platinum Management (NY) LLC.
Hagens Berman is further investigating sellers and dealers who may have received sales compensation or a percentage of the management fees and/or performance allocations of investment managers or affiliates, including Palladium Capital Advisors, LLC and Monarch Bay Securities LLC; Financial Fairplay AG; Cantone Research, Inc; Thomas Group Capital; Cluran Group; Fin West; Alphasource Capital Securities LLC; Paratum, Inc.; Eaton Partners, LLC; Abraham Biderman/Eagle Advisors; Spencer Clarke LLC; Seton Securities Group; C-Advisors; Bhargava Capital; KPG Capital Partners LLC; Gar Wood Securities, LLC; Alpha Capital Securities LLC.
“Hagens Berman has extensive experience representing investors in litigation involving Ponzi schemes like the Madoff Ponzi scheme,” said Hagens Berman Partner Reed Kathrein. “If money is missing, or fraud was committed, litigation, not liquidation, is going to recover investor losses.”
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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