Tetragon Financial, Tiger Global, Michael Kimelman, Alphonse Fletcher

Hedge fund founders looted Tetragon: lawsuit (Reuters)
Two hedge fund founders were accused in a U.S. lawsuit of using accounting manipulation to loot $205 million in fees from Tetragon Financial Group Ltd. The complaint names Patrick Dear and Reade Griffith, who founded the hedge fund firm Polygon Investment Partners LLP, as well as nine other individuals who are current or former Tetragon directors or are affiliated with Polygon.

Hedge-Fund Investors Scout Out Web Firms (WSJ)
In the past 12 to 18 months, firms including D.E. Shaw & Co., Maverick Capital, Brookside Capital and Tudor Ventures, as well as hedge-fund investor James Pallotta, have joined Tiger in putting more money into promising yet risky tech companies. But Tiger has been especially active. Founded in 2001 by Charles “Chase” P. Coleman III, a protege of hedge-fund investor Julian Robertson, the firm launched its first private-equity fund in 2003. In 2009, it began buying large blocks of stock in companies like Zynga, LinkedIn and Facebook on the secondary market. Its 4.2% stake in LinkedIn, amassed at a cost of about $70 million, is now valued at nearly $400 million.

Ex-Hedge Fund Trader Seeks New Trial In Insider Probe (WSJ Law Blog)
Former hedge fund trader Michael Kimelman wants a new trial, arguing in part that prosecutors failed to prove he made improper trades in 3Com Corp. in 2007 based on inside information. As a reminder, Mr. Kimelman was convicted along with two other former hedge-fund traders of criminal charges in June, as part of a crack down by prosecutors on insider-trading in corporate America. Mr. Kimelman was convicted of conspiracy and two counts of securities fraud. Prosecutors had alleged that Mr. Kimelman received nonpublic information from Zvi Goffer, the alleged “ringleader” of the scheme.

SEC Probes Fletcher Asset Hedge Fund (Bloomberg)
The U.S. Securities and Exchange Commission opened a probe into New York hedge fund Fletcher Asset Management as three Louisiana pension systems raised questions about its liquidity, the Wall Street Journal reported, citing a person familiar with the matter. The firm, founded in 1991 by Alphonse Fletcher, received investments of $100 million from the pension funds in 2008 after promising a minimum return of 12 percent a year, the Journal reported. Two of the funds sought to cash out some of the profits by withdrawing $32 million in March, according to the statement, which was signed by pension officials and posted on the newspaper’s website.