Fri Jun 29, 2007
Faced with huge fraud, Durus investors take the fund's fate into their own hands. Investors get $5.6 million from Scott Sacane; wife keeps jewelry
Faced with a huge fraud, Durus investors take the fund's fate into their own hands. Investors get $5.6 million from Scott Sacane; wife keeps jewelry
By Sarah Wood
When Leslie Lake left New York City for the Cayman Islands the Sunday before Labor Day in 2003, she was on no end-of-summer holiday. Lake, and the group traveling with her, were preparing to execute the first-ever hostile takeover of an offshore hedge fund. It was a pivotal trip in what would become a nearly four-year odyssey aimed at saving the assets of Durus Capital Management, which Lake and her colleagues were coming to realize had been subject to a huge fraud. "I was scared as hell," says Lake, who was effectively set to take over as manager of Durus. "I felt this tremendous responsibility."
Lake's course had been set a month earlier when she received a disturbing late night...
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