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March 30, 2016

Fund Chief's Charity Says It Was Victim of $25 Million Fraud

Billionaire hedge-fund manager Louis Bacon's foundation said Tuesday that it was the charity allegedly victimized in what authorities say was a fraud scheme orchestrated by another Wall Street executive, The New York Times reports. Mr. Bacon said his Moore Charitable Foundation, which supports conservation efforts, put $25 million into an alleged phony investment vehicle promoted by Andrew Caspersen, then with private-equity firm the Park Hill Group.

Mr. Caspersen was arrested Saturday and charged with plotting to defraud multiple investors of $95 million. Prosecutors said he lost most of the money he received from a previously unnamed charity in aggressive options trading. The Moore foundation said it "detected irregularities in a proposed follow-on deal” and notified investment bank PJT Partners, Park Hill's parent company, and cooperated in its investigation of the matter.