DOW JONES NEWSWIRES
SageCrest, the hedge fund owned by Windmill Management that filed Aug. 17, for bankruptcy, did so in part as a way to head off the appointment of a forensic accountant to probe the firm's books, the New York Post reported Sunday.
WoodCreek Capital, an investor in the SageCrest II hedge fund, claims the brothers who run the fund, Alan and Philip Milton, filed for Chapter 11 in order to avoid a preemptive lien on some of its assets and access to its books, the newspaper said.
"This was really a move to avoid a forensic account of the assets and allow the Miltons to keep control of the fund and earn fees," an unnamed person familiar with WoodCreek's position said, according to the Post.
The lawsuit by WoodCreek was one of the issues that prompted the bankruptcy filing, the newspaper reported, citing a letter Windmill sent to investors.
Full story: http://www.nypost.com/seven/08242008/business/milton_bros__feel_heat_on_funds_125801.htm
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(END) Dow Jones Newswires
August 24, 2008 20:26 ET (00:26 GMT) | 
