Anatomy of a Debacle

Hedge funds aren’t just for the superrich anymore. Nor, say investors in Sterling Watters, is fraud.

In 1994, Susan Lanzano began receiving reparation payments from the German government for property in Berlin that the Nazis had confiscated from her Jewish grandfather just before World War II. The money came as an unexpected windfall for Lanzano, who was then working as an editorial manager for Oxford University Press and living in Westchester County, New York, with her husband, Michael, and their teenage son.

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