Legal
George Weiss Payments From Own Firm to Be Reviewed, Judge Says
- Weiss creditor Jefferies sought an expanded review of payments
- Review will also cover $30 million in employee bonus payments
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A federal judge granted a request by Jefferies Financial Group for an outside review of payments Weiss Multi-Strategy Advisers made to its founder, George Weiss, and other executives before the hedge fund filed bankruptcy earlier this year.
Judge Martin Glenn said Tuesday he’ll authorize the review that is broader than an examination originally sought by Weiss. Jefferies, a major Weiss creditor, has said payments to George Weiss or other Weiss officers in the two years before the fund went bankrupt could be voidable under Chapter 11 powers that allow bankrupt companies to clawback payments to corporate insiders.