Hedge Funds

Former NYC Mayor Koch battles defunct Strafaci fund

by

Former New York City Mayor Ed Koch is engaged in a bizarre legal battle with a defunct convertible bond fund. Koch was an investor in Kenneth Lipper's Lipper Holdings, but redeemed in 2000. Good thing he did. Two years later fund manager Edward Strafaci was behind bars for securities fraud, convicted of inflating the fund's value. But now fund trustees have filed suit in federal court in Manhattan seeking $1 million in profits and $500,000 in interest because they say the fund was overvalued at the time Koch left. PG