The takeover

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...

ISSN: 2151-1845 / CDC10004H

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