Arrest Made In Cayman Hedge Fund Investigation
Police in the Cayman Islands have reportedly made an arrest linked to the recent
collapse of several hedge funds registered in the jurisdiction. Detectives from the Financial Crimes Unit (FCU) of the Royal Cayman Islands
Police Service (RCIPS) arrested a 47-year-old man last week on suspicion of
theft, false accounting and uttering false documents in relation to the Grand
Island Funds, which were recently placed into voluntary liquidation by the funds'
shareholders. According to a report by Cayman Net News, it is speculated that the losses
stem from oil trades and total some 70 million dollars. The Cayman Islands Monetary Authority (CIMA) confirmed in a statement on 25th
June that three CIMA-registered investment funds and a fourth fund, not regulated
by CIMA, have been placed into voluntary liquidation. The entities, which are all Cayman-domiciled, are Grand Island Commodity Trading
Fund I, Grand Island Commodity Trading Fund II, and Grand Island Income Fund,
which were registered by CIMA in 2006, and Grand Island Master Fund, which is
unregulated. The action was taken, with CIMA's knowledge, following the discovery of irregularities
in the funds' trading activities. The liquidators have indicated that they will be applying to the Grand Court
of the Cayman Islands for the liquidation to be brought under the court's supervision. CIMA announced in its statement that it is continuing its own investigation
into the matter. .
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