Bayou Group Fraud

Investors in the Bayou Group are shocked to learn that the millions they paid to this hedge fund are likely gone. Regulators are examining where the money went and whether other companies such as auditors and related brokerage firms should be held accountable. Another source which should be examined is the "clearing broker" who cleared the trades for the Bayou Group to see what they knew and when they knew it.

It is unclear whether investors can recover their losses due to securities fraud and investment fraud in securities arbitration cases. This case sends a wake up call to investors and regulators about the dangers of investing in unregulated hedge funds.