Administration Services (Bermuda) Ltd.

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Bear Stearns accused of preferential treatment over failed BVI fund

Bear Stearns has been accused of tipping off privileged clients so that they could cash out of the BVI-registered Manhattan Investment Fund before it collapsed in January with losses of about $450 million. It has also been claimed that the broker exceeded "generally accepted margin limitations" in extending credit to the fund, thus contributing to the size of its losses.