The takeover

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Faced with huge fraud, Durus investors take the fund's fate into their own hands. Investors get $5.6 million from Scott Sacane; wife keeps jewelry

Faced with a huge fraud, Durus investors take the fund's fate into their own hands. Investors get $5.6 million from Scott Sacane; wife keeps jewelry

By Sarah Wood

When Leslie Lake left New York City for the Cayman Islands the Sunday before Labor Day in 2003, she was on no end-of-summer holiday. Lake, and the group traveling with her, were preparing to execute the first-ever hostile takeover of an offshore hedge fund. It was a pivotal trip in what would become a nearly four-year odyssey aimed at saving the assets of Durus Capital Management, which Lake and her colleagues were