Claris Law Legal Blogging Community

Editor: Kristian Rasmussen
Profession: Investment Fraud Lawyer

Category: Investment Fraud News

It has been estimated that a large percentage of the daily trading in the stock market is due to hedge funds. Relieved of many disclosure requirements, fund owners can only hope the trading straegies pay off.

Connecticut Attorney General Richard Blumenthal (D) urged Congress yesterday to heighten federal scrutiny of the secretive hedge fund industry or face the prospect of a patchwork group of state authorities stepping in to monitor the rapidly growing investment pools to prevent fraud.

Blumenthal, whose state is the headquarters for scores of hedge funds, told the Senate Judiciary Committee that last week's federal appeals court ruling striking down oversight of the funds by federal regulators left investors "in a regulatory void, without any disclosure or accountability."