The arrests and the hundreds of millions of dollars in potential losses notwithstanding, is the alleged fraud at German fund of hedge funds firm just a simple case of lost in translation? Or an accounting snafu? Cautioning against boldness, the...

German police have arrested the founder of K1 Group, Helmut Kiener, in connection with an investigation into allegations of fraud at his hedge fund, a local prosecutor said. European and U.S. authorities are investigating allegations that K1 embezzled millions of...