Is Wood River Hedge Fund the Next Bayou?
On the heels of the Bayou Management debacle comes another hedge-fund scandal. Lehman Brothers has sued San Francisco-based hedge-fund firm Wood River Capital Management, alleging the firm lured the investment bank into a fraudulent stock-transfer scheme involving shares of Endwave Corp., a Sunnyvale, Calif.-based maker of radio frequency components. Lehman has been unable to reach Wood River since Sep. 28 and believes the firm has shut down. The investment bank claims that Wood River's management has wrongfully obtained, or tried to obtain, $20.8 million from a Merrill Lynch account. Read the entire BusinessWeek Online story here.
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