Ex-Hedge Fund COO Says He Helped Hide Company’s Dire Finances
- Manela testifies against co-founder Nordlicht and others
- Former executives are charged with defrauding investors
Mark Nordlicht, co-founder of Platinum Partners LLP, exits federal court in the Brooklyn, New York in 2017.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
A former executive at the defunct hedge fund Platinum Partners said he helped his colleagues hide the company’s true financial condition from investors as they increasingly sought to pull their money out of the firm before it collapsed.
Naftali Manela, Platinum’s former chief operating officer and one of two ex-executives cooperating with prosecutors, told a federal jury that they masked the firm’s struggle for cash by having one fund lend to another or paying back some investors before others.