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Lawyers warn of spike in suits against hedge fund ‘fraudsters’

'When things are going well and everyone's making money, it's harder to identify fraud because there's less scrutiny, but now there will be some nervous hedge funds out there'

Bernie Madoff on the cover of New York Magazine in 2009
Bernie Madoff on the cover of New York Magazine in 2009 Photo: Timothy A. Clary/Getty Images

Hedge funds desperate to stay afloat amid the choppiest markets in years are likely to flout the law, leading to a wave of litigation in areas including misconduct, excessive fees and fraud.

That’s according to Fox Rothschild partner Jon Heyl, who in early June gave the warning to watchers of his US law firm’s webinar on how the industry is handling the virus crisis.

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