Ritchie Capital Management, its founder, Thane
Ritchie, and two Ritchie employees have agreed to pay about $40
million to settle charges that they illegally traded mutual
fund shares. Separately, the troubled firm has sued two
investors who are trying to force its multistrategy fund into
involuntary bankruptcy, arguing that the investors have
disparaged the firm.
According to the U.S. Securities and Exchange Commission,
Ritchie Capital engaged in an illegal late-trading scheme in
mutual fund shares from January 2001 through September 2003 for
its Ritchie Multi-Strategy Global Fund, which pocketed some $30
million in profits.
During that time, Ritchie placed...