Manhattan Investment Fund

Former hedge fund boss arrested in Austria after five years on the lam

July 12, 2007

Former offshore hedge fund manager Michael Berger, 35, who fled the United States more than five years ago while awaiting sentencing after pleading guilty to securities fraud in New York, was arrested in his native Austria on July 6.

Bear Stearns ordered to pay $159 m for hedge fund due diligence failure

March 9, 2007

Securities broker Bear Stearns Securities Corp. has been ordered to pay $159 million to the estate of a failed offshore hedge fund for ignoring red flags about the fund's fraudulent operating practices. The judgment at the U. S. Bankruptcy Court for the Southern District of New York is a huge boost for creditors of the British Virgin Islands-registered, New York-based Manhattan Investment Fund Ltd., whose net insolvency before the ruling was $391 million.

Insider Talking: November 30, 2003

November 30, 2003

Deloitte & Touche has offered $32 million to settle a class action lawsuit filed on behalf of shareholders of the British Virgin Islands registered Manhattan Investment Fund who bought shares between October, 1995 and January, 2000. D&T's Bermuda office audited

Deloitte & Touche offers $32 m to settle hedge fund lawsuit

November 30, 2003

Deloitte & Touche has offered $32 million to settle a class action lawsuit filed on behalf of shareholders of the British Virgin Islands-registered Manhattan Investment Fund who bought shares between October, 1995 and January, 2000.

Helen Gredd (Chapter 11 Trustee for Manhattan Investment Fund Ltd.) v. Bear Stearns Securities Corp.

March 7, 2003

Helen Gredd (Chapter 11 Trustee for Manhattan Investment Fund Ltd.) vs. Bear Sterns Securities Corp. - Bermuda Supreme Court

Michael Berger awaits sentence after pleading guilty to securities fraud

December 31, 2000

Hedge fund manager Michael Berger, who lost approximately $400 million of investor money in the BVI-registered Manhattan Investment Fund, is due to be sentenced on March 16, 2001 after pleading guilty to one charge of securities fraud.

Bear Stearns accused of preferential treatment over failed BVI fund

March 31, 2000

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.

More lawsuits following collapse of $500 million hedge fund

February 29, 2000

The barrage of litigation surrounding the collapse in January of BVI-registered Manhattan Investment Fund and the disappearance of nearly $500 million continued this month. Five lawsuits were filed at Bermuda Supreme Court during February to go along with the four that were filed at the same court the previous month and one in New York.