Man Group, the world's largest publicly quoted hedge fund, has agreed that the US unit of brokerage arm Man Financial will release yet more documents and e-mails sought by a US receiver appointed to recover the losses of hedge fund Philadelphia Alternative Investment (PAAM), which went belly up after losing $179m in fairly quick order.
PAAM went to the wall 6 months or so ago, and US The Commodity Futures Trading Commission has charged the firm, and founder Paul Eustace, with fraud.
Man, which has already released thousands of documents to the receiver, has been dragged into this affair as it has been alleged that one of its employees, Thomas Gilmartin, assisted PAAM by hiding unprofitable trades in a secret account at Man Financial. Man has denied the allegations, and accused the US receiver of going on a 'fishing expedition'.
Gilmartin, a Senior Vice President, is currently on administrative leave from Man, and he has been told by the court that he has until the end of the week to reveal the whereabouts of any documents that he might have which pertain to this case.