A Bayou-related investor suit filed against Hennessee Group, a financial advisory firm has been dismissed. Hennessee was being sued for breach of fiduciary duty by South Cherry Street, LLC, which on Hennessee's say-so had invested $1.5 million with Bayou.

While proprietors of Hennessee, Lee and her husband Charles Gradante claim to have a thorough five-step due diligence process, the folks at South Cherry Street claimed that this was never conducted in the case of Bayou.

The judge found differently, deciding that Hennessee was just another sucker in a group that included the IRS and the SEC. Ouch...

Also, it appears that Bayou badguys Sam Israel and Daniel Marino will be sentenced for their roll in the hedge fund fraud as soon as September.

Further details on Bayou via Reuters.

-- MDT

Labels: Bayou Group, Fraud, hedge fund, Hennessee, South Cherry Street