Man caught in Cayman hedge fund collapse

Detectives from the Royal Cayman Islands Police Service (RCIPS)’s Financial
Crimes Unit (FCU) have arrested a 47-year old man on suspicion of theft, false
accounting and issuing false documents following investigations into the
collapse of four hedge funds listed under the umbrella name Grand Island.

Cayman Islands Monetary
(CIMA) confirmed in June Grand Island funds were put into
voluntary liquidation by the funds’ shareholders. Three of the four funds were
registered with CIMA in 2006 and one other was an unregulated fund, Cayman
NetNews reports

Police believe the funds are worth millions of dollars but it is still
unclear how much money was lost and how many people are affected by its

However, it is widely speculated the losses are up to $US70m (?35m) and the
main commodity traded was oil. The minimum investment in the fund was

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