Bayou payout expected soon

24 October 2006

Investors who piled money into the now collapsed Bayou hedge fund could see some of their money returned, according to a US district attorney.

Reuters reports that authorities are planning to distribute more than $100 million to victims of the fraud that eventually led to the fund's demise last year.

The money was recovered following the collapse, and attorney Michael Garcia has reportedly said that it will be given out to the fund's former investors in the near future.

The sums of money, however, are likely to account for only a proportion of the funds lost, with former Bayou executives Samuel Israel and Daniel Marino being believed to have defrauded investors of around $450 million in total.

The executives, who were the fund's chief investment officer and chief financial officer respectively, were charged with fraud last year, and are currently awaiting sentencing after pleading guilty.

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