Hedge Funds

Cayman's twist in Parmalat scandal


The latest twist in the Parmalat scandal is the allegation that Italy's largest food company set up and then hid the purpose of the Cayman-domiciled Epicurum hedge fund, whose liquidation helped contribute to the company's collapse.

A recent published report by Bloomberg said that Parmalat's disclosure last November of a $600 million investment in the fund omitted the fact that the Italian company had founded Epicurum. Italian prosecutors claim the Cayman fund and other offshore entities were deliberately used to hide Parmalat's mounting losses and fabricate fictitious assets. Prosecutors also allege that Epicurum's failure to refund investment dollars precipitated