18 Apr 2016
It is not certain if or to what extent investors have been bilked, or who has done the bilking. Indeed, it is hard to establish very much at all, given the complexity of the case: authorities in the Cayman Islands, Guernsey and Mauritius are all looking into it and a South African financial regulator is following it closely. Investigations are focused on various entities connected to Belvedere Management, a Mauritius-based group that claims to administer around 100 hedge funds and run several finance-related companies. David Marchant, editor of OffshoreAlert, a newsletter on financial crime, has identified numerous red flags in some of these funds, including several years of consistent, positive monthly returns, which can be a sign of a Ponzi scheme.
Belvedere’s bosses, Cobus Kellerman and David Cosgrove, deny all of the allegations of wrongdoing and criminal activity. Instead, Belvedere has told worried investors that Grant Thornton, an accounting firm, has been called in to wade through the complexities of the funds and “review your assets and to advise us and assist the relevant authorities”.
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