Man Financial has stated that it has been informed of an impending "informal investigation" by US regulator Securities and Exchange Commission (SEC) into the events leading up to hedge fund Philadelphia Alternative Asset Management (PAAM)'s financial collapse.
The receiver for PAAM, Clark Hodgson, has alleged, in documents accusing Man of contempt of court, that the firm was also involved in trading and reporting irregularities perpetrated by PAAM manager Paul Eustace (see FO Week Vol 10 No 40).
A spokesperson for Man told FO Week that SEC had informed the firm that it was to open an enquiry into PAAM, following the case brought against the hedge fund in Eastern Pennsylvania District Court by Commodity Futures Trading Commission (CFTC).