Lets go back to last fall and recall the implosion of hedge fund, Bayou Group. The failure of this multi-million dollar fund sent shockwaves through the business media and was one of the key factors in raising the profile of hedge fund fraud in the press. Heck, it even prompted Risk Magazine to give a call to The Daily Caveat for a brief interview.

Law.com has a post-game analysis of the Bayou collapse from Jeff Marwill, a partner in the bankruptcy practice of Jenner and Block. Marwill charts the organization of the Bayou entities, what went wrong and how investors were made to eat the losses. Bayou Group subsequently declared bankruptcy and Marwill is uniquely qualified to comment on the aftermath as, in April '06 , he was appointed the federal equity receiver responsible for aiding investors in recouping some of the $450 million lost in the Bayou Fraud.

Interesting reading. And as always, when it comes to investing - do your homework.

-- MDT

Labels: Bayou Group, Fraud, hedge fund, Jeff Marwill, Jenner and Block