So Platinum Partners isn’t having the best couple of weeks. First, its co-founder and a major investor were handcuffed and accused of orchestrating a little Italian leather kickback scheme. As is traditional in such instances, Platinum has decided to close the funds allegedly involved, with its unindicted co-founder, Mark Nordlicht, promising to “do a bang-up job on the way out.” With “God’s help,” of course.
He may need it in the face of the Wrath of New York State Judge Salinann Scarpulla, who is dealing with one of Platinum’s other legal issues: The allegation on the part of a private-equity firm that the hedge fund defaulted on $30 million in debt. Judge Scarpulla, it seems, is a bit less sanguine than Nordlicht that the assistance of the Almighty will be forthcoming.
“I haven’t seen evidence that the fund is worth a billion dollars. For all I know the fund is worth five cents,” an exacerbated Scarpulla said after failing to get satisfactory answers to her questions about the hedge fund’s financial status….
During the hearing, Judge Scarpulla even ordered Platinum’s lawyer, David Eiseman, to call Platinum right then and there and get someone on the phone to assure her that they have the money to repay their debt.
She did not get the answer she sought.
Eiseman came back empty-handed, saying Platinum’s in-house legal counsel requested 48 hours to make any kind of guarantee.
Judge doubts hedge fund tied to kickback probe can pay debt [N.Y. Post]
Platinum Partners Plans to Unwind Main Hedge Fund Amid Kickback Probe [WSJ]
Hedge Fund Platinum Partners Received Notice of Default Connected To $30 Million Of Notes [Forbes]