Hedge Funds

Durus, Sterling Waters among the funds subject to court actions


Wood River is not the only hedge fund that was subject to official action this week. In fact, the court calendar was heavy with litigation in cases of alleged hedge fund fraud.

- J. Douglas Schmidt, formerly the chief operating officer and chief compliance officer at Norwalk, Conn.-based Durus Capital Management, on October 12 pleaded guilty charges of filing false information with the U.S. Securities and Exchange Commission. The SEC claims the false filings were part of a stock manipulation plot that helped generate returns that produced some $42.9 million in fees paid by Durus investors.

The SEC has filed