One day, the morality play that is Platinum Partners will come to an end. From its high-flying, 650%-returning-on-controversial-energy-investments days to its current embroiled-in-a-pay-to-play-scandal, attempting-to-prove-it-still-has-a-nickel-in-the-bank, getting-raided-by-the-FBI, barely-solventbankruptcy present, the whole sorry tale will be history. And wouldn’t it be perfectly fitting for this Shakespearean drama to end with our protagonist finally felled by that with which it made its name in the first place?
Troubled hedge fund manager Platinum Partners was ordered by a U.S. bankruptcy judge to temporarily freeze approximately $118 million after a lawsuit Wednesday accused it of illegally stripping key assets from a now-collapsed energy company….
U.S. bankruptcy judge Marvin Isgur wrote in his order Wednesday that "the allegations ... reflect a pattern of fraud and abuse by Platinum" and there is a "reasonable probability that fraud has occurred."