Hedge Funds

Thickening web of litigation around Lauer


Investors in Michael Lauer's $1 billion hedge fund group remain in limbo in the midst of a thickening web of litigation around Lancer Partners.

Morgan Stanley and other investors are currently trying to pull a cumulative $360 million from Lancer's portfolio as they try to oust Lauer as trustee for the U.S. fund in a bankruptcy court in Bridgeport, Conn. The offshore BVI-based portfolio is already in bankruptcy, while similar moves are under way there to wrest control of the fund away from Lauer.

Meanwhile, in late May, U.S. prosecutors filed a new indictment against Bruce Cowen who worked