updated: 10/14/2005 12:52:22 PM
DePauw University tells Inside INdiana Business that it has filed a lawsuit against its investment adviser Hennessee Group claiming that it misled the university into investing $3.25 million in a hedge fund managed by Bayou Management.
Bayou's founders pled guilty last month to fraud in federal court in New York. DePauw charges that Hennessee made untrue statements and falsified investment-performance results.
The university says it was told by Hennessee that the firm had investigated Bayou Superfund's performance since 1997, but in reality the fund did not exist until 2003.
The lawsuit says DePauw is seeking the return of its $3.25 million plus 8 percent interest, fees paid to Hennessee, costs and attorney's fees. Hennessee, a New York-based firm managed by Lee Hennessee and her husband, Charles Gradante are listed as defendants in the suit.
Source: Inside INdiana Business