Judge Now Cool With Taking Allegedly Ethically Challenged Hedge Fund At Its Word

Platinum Partners lawyer would like her honor to know that his client has some money...trust him.
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Last week, New York State Judge Saliann Scarpulla wasn’t sure that Platinum Partners—you know, the suspiciously successful and (allegedly!) morally flexible hedge fund that finds itself caught up in a little pay-to-play scandal in which bribes were (allegedly!) only accepted in Italian leather envelopes—had five cents to its rapidly muddying name. Now, she’s comfortable that it’s got at least $30 million of the $1.35 billion it says it has and which it (allegedly) owes to a private equity firm for (allegedly) defaulting on its debt, presumably because it is able to afford a lawyer skilled enough to convince her that it’s got the cash without providing an iota of evidence.

Platinum Partners’ lawyer David Eiseman told state Justice Saliann Scarpulla in a conference call that the hedge fund — which holds $20 million of investments from the correction officers’ union — has the cash. But he stopped short of providing any supporting documents or financial statements to back his claim, sources told The Post.

That seemed to be enough for Judge Scarpulla, however, and she agreed to let the case move forward on a $100,000 bond.

Judge believes hedge fund tied to kickback probe can repay $30M loan [N.Y. Post]

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