D.B. Zwirn to shutter two hedge funds

The firm was “the unfortunate victim of misconduct by certain former employees,” according to a client letter.
FEB 22, 2008
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.

Latest News

Trump drops $10 billion IRS lawsuit as $1.7B settlement fund takes shape
Trump drops $10 billion IRS lawsuit as $1.7B settlement fund takes shape

A last-minute court filing ends a case against the federal tax-collecting agency that had drawn unprecedented conflict-of-interest questions from Democratic critics.

You Can’t Spell Advisor without AI
You Can’t Spell Advisor without AI

Advisors discuss their use of AI now and how it will change going forward

DOJ's fraud sweep bags over $1B in convictions, guilty pleas and indictments in a single week
DOJ's fraud sweep bags over $1B in convictions, guilty pleas and indictments in a single week

Medicare scam, pandemic benefit theft, offshore tax evasion — federal prosecutors are casting a wide net.

Retirement without guaranteed income streams may mean near-total asset wipeout
Retirement without guaranteed income streams may mean near-total asset wipeout

Report finds that pension income acts as a financial lifeline for retirees facing late-life shocks and raises urgent questions about the DC-only future.

Federal judge dismisses Eltek manipulation lawsuit against Morgan Stanley Smith Barney
Federal judge dismisses Eltek manipulation lawsuit against Morgan Stanley Smith Barney

Nine-month electronic trading freeze and share lending program at the center of dismissed claim.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline