Sector developments and company hires

Hedge fund liquidated amid accounting probe
TCA Fund Management Group is liquidating its main credit hedge fund, TCA Global Credit Master Fund, after the fund received redemption and withdrawal requests in excess of available cash. The redemptions come amid a US SEC probe into the firm’s accounting practices. According to whistleblowers, the firm has US$300m in assets - not US$500m - and is earning 1.92% per year, not 7%-8%, as claimed in communications with investors. Furthermore, the fund has allegedly failed to book losses on defaulted loans and has recorded fee revenues it has not received.

Morgan recoveries distributed
The US SEC has obtained a court order authorising the distribution of over US$63m to investors in connection with its action filed against Robert Morgan and two of his entities, Morgan Mezzanine Fund Manager and Morgan Acquisitions, that alleged they engaged in a fraudulent real estate investment scheme (SCI passim). Upon filing this action, the SEC sought and obtained certain emergency relief, including the appointment of a receiver responsible for maximising the monetary recovery for investors. Since filing, Morgan voluntarily liquidated certain assets to generate funds for collection by the receiver and the court approved the receiver’s plan last week. The case is continuing to be investigated.