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Article: Fraud Containment: Hedge fund, PE fund managers advised to watch for fraud, money-laundering.
- Article from:
- Investment Dealers' Digest
- Article date:
- April 21, 2008
- Author:
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"Money-laundering" and "your firm" are not phrases most fund managers want to hear in the same breath.
So, the investment management industry that includes hedge funds and private equity firms is placing more emphasis on controls to prevent fraud and money laundering.
Often, "fund managers do not think it can ever happen to them," says Michael Brodsky, senior manager in forensic and dispute services at Deloitte. However, "the evolution of fraud controls in private equity and hedge funds are not as robust as larger industries, and funds tend to have low fraud controls, which can create a greater opportunity to commit fraud," he says.
Brodsky ...