Hedge fund firm, Banyon Investments, has lost $775 million in the alleged Ponzi scheme run by Scott Rothstein, Bloomberg reports. The Florida firm’s investments make it the biggest creditor of Rothstein’s law firm, which collapsed amidst allegations he was running a $1.2 billion Ponzi scheme.
The lawsuit names Banyon and its CEO, George Levin, as defendants who knowingly participated in the scheme. According to the lawsuit, Levin invested about $75 million a month with Rothstein via Banyon funds. He bought over $1.1 billion of legal settlements at a discounted $657 million although he knew they were false.
Click here for the complete story.
