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  Cover-up in the Investment Industry

18 Jul 2000 - "NEW HEDGE FUND MELTDOWN ON WALL ST. EXPOSED"

Susan Heinrich's article in the National Post says "the US$500 million Manhattan Investment Fund Ltd. has been losing, not making, money as it previously reported to shareholders."

Michael Berger, manager for the fund, is quoted as saying "... the fund's actual net assets are substantially less than those previously reported."

This follows closely on the revelation of the Phoenix Hedge Fund losses over the last couple of years. (See PHOENIX HEDGE FUND)

SIPA says - Phoenix blamed their losses on "Rogue" trader Duthie. Will Manhattan blame their losses on "Rogue" manager Berger? Are the ones who get caught the only ones called Rogues?

Will the industry continue to try to cover up rather than clean up their act?

Will the public continue to buy funds when they learn of more and more cover-up and fraudulent reporting?

Will those involved in fraud in the large companies be charged in criminal court or will only the small fry like Kinlin and others be tried by the crown?

4 Jul 1999 -  "ROGUE TRADER LEESON FREE ... BUT HIS PUNISHMENT GOES ON" 

Michael Sheridan's article in the Toronto Star asks the questions - How did he get away with it for so long? Was anyone else in on the act? Was there an Establishment cover-up?

SIPA says - When brokerage firms will not admit to wrongdoing and hide the facts are they not guilty of cover-up? When the regulators will not reveal whether brokers have been disciplined are they not guilty of cover-up? When the Ministry of Finance will not reveal pertinent information under the Freedom of Information Act when the regulators do not want the information released are they not guilty of cover-up?