Hedge Funds

Hedge fund fraud filings accelerate in late '05


The final days of 2005 saw a flurry of fraud filings against hedge funds by regulators as well as new developments in ongoing cases. Here were the highlights:


On December 21, Scott Sacane of Durus Capital Management pleaded guilty in federal court in Connecticut to violating the Investment Advisors Act of 1940 and manipulating the price of two bio-tech stocks between November 2002 and July 2003. He also acknowledged trying to conceal those portfolio holdings from regulators. Sacane faces up to five years in jail and $250,000 in fines. Sentencing is slated for late April.


· The U.S. Securities and