D.B. Zwirn to shutter two hedge funds

D.B. Zwirn & Co. of New York will shut down its two largest hedge funds after investors asked to withdraw more than $2 billion in investments, according to published reports. The company plans to announce in March how investors’ money will be returned to them. The firm was “the unfortunate victim of misconduct by certain former employees,” according to a client letter. The letter also stated that current leadership was “above reproach.” In September of 2006, D.B Zwirn fired a trader previously dismissed by Citigroup for falsifying profits. David Becker, previously head of Citigroup’s trading desk, pled guilty in 2006 to falsifying profits by as much as $20 million in order to secure a larger bonus for himself. He was terminated from Citigroup in March of 2004. The Special Opportunities funds specialize in corporate and real-estate debt. The firm will continue to manage the $1 billion in assets still under its control, according to the client letter.