NIR Group Probe
NIR Group Investigated For Allegedly Giving Kickbacks
U.S. authorities have been investigating the company since last year on whether managing member Corey Ribotsky defrauded investors about their returns and the holdings of his various funds, according to the paper.
Ribotsky managed more than $780 million in hedge fund assets last year. The company reported eight years of positive returns in its biggest fund starting 2001, the paper said.
NIR invests its hedge-fund assets mainly in small public companies through privately negotiated deals and mostly receives notes that could be converted into stock at a discounted rate, the article said.
The people told the paper that the authorities are investigating whether NIR valued certain notes at a higher level than the underlying value of the companies'.
Investigators are trying to ascertain whether people with financial ties to outside companies got kickbacks in exchange for helping NIR inflate values of its investments, the paper added. Source
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