"Lucky" Bayou Hedge Fund Investors To Be Sued To Recover Funds

The Bayou hedge fund was a sham that caused great losses to many investors, but not all investors. The "lucky" ones (usually the earlier investors in such Ponzi schemes) "earn" some return.

All that will change. The bankruptcy trustee for Bayou promises an "aggressive bankruptcy and litigation initiative" to recover "phony profits" paid to some early investors.

Whether these investors fight or not, they would be remiss not to consider another option: whether or not to bring arbitration and litigation actions against their advisers who introduced and/or recommended and/or monitored the Bayou "investment".

Source: The New York Times, May 31, 2006