Hedge Fund BlueCrest Sued in US

//Hedge Fund BlueCrest Sued in US

Hedge Fund BlueCrest Sued in US

Michael Platt Hedge Fund BlueCrest Sued in US.

Michael-Platt-Personal-PhotoBlueCrest Capital Management was sued by a group of investment firms over claims an employee at the hedge fund run by billionaire Michael Platt conspired with banks to rig the Swiss franc Libor rate.
The allegations closely follow information disclosed by the New York Department of Financial Services in April as part of a record $2.5 billion fine against Deutsche Bank AG.

The lawsuit cites a transcript released by regulators that indicated a BlueCrest employee asked a Deutsche Bank director to contribute a low interest rate to Libor submissions.
BlueCrest and other defendants “rearranged their Swiss franc Libor-based derivatives desks to encourage cooperation among traders,” investors said in the lawsuit filed June 19 in federal court in Manhattan.
The world’s largest banks have paid about $9 billion in fines since 2012 to settle allegations of rigging the London interbank offered rate, a key financial benchmark used to set interest rates.

Jersey-based BlueCrest is the only hedge fund sued in the lawsuit filed by a group of investors including Sonterra Capital Master Fund and FrontPoint European Fund.
Vigorous Defense
BlueCrest said that the claims in the lawsuit are without merit and that it will vigorously defend itself.
“We have reviewed the circumstances surrounding the communication mentioned in the complaint and are satisfied with our employee’s continued suitability to serve at BlueCrest,” the hedge fund said in the statement.
The lawsuit, which is seeking class-action status, was initially filed in February against banks including Credit Suisse Group AG, JPMorgan Chase & Co., Royal Bank of Scotland Group Plc and UBS Group AG. BlueCrest and Deutsche Bank were added in June, two months after the New York Department of Financial Services fine against Deutsche Bank.
In April, BlueCrest said it fired a money manager for allegedly asking an employee at Steve A. Cohen’s investment firm to front run, or place a trade ahead of him. A Manhattan judge said in June that Nicholas O’Grady couldn’t sue over his dismissal.
The case is Sonterra v. Credit Suisse, 15-cv-00871, U.S. District Court for the Southern District of New York.

Read More: Bloomberg


(Visited 167 times, 1 visits today)

About the Author:

Hedge Fund News covering: news, gossip, sex, scandals, top funds, hedge fund managers, hookers, mergers, acquisition, investors, by Hedgeho