Lipper: "Looking Out for His Friends"?

Kenneth Lipper, the money manager who lost millions running a hedge fund for the rich and famous, may have been looking out for himself, his family, and at least one friend at others' expense.

This allegation is made in a lawsuit filed on Jan. 3 in a federal court in South Carolina by the blind trust of Senator Ernest "Fritz" Hollings (D-S.C.). Lipper announced in February, 2002, that Lipper Convertibles had lost 40%, or $315 million, of its value. The complaint states: "Remarkably, in January, 2002, prior to Lipper's February announcement, Ken Lipper, through Lipper Holdings, had already withdrawn $3.15 million from his own capital account."