From Reuters on Thursday afternoon:RTRS-GERMAN ARREST WARRANT FOR K1 HEDGE FUND’S KIENER SAYS BARCLAYS PUT NEARLY $220 MLN INTO FUND, MOST OF WHICH APPEARS LOST
RTRS-ARREST WARRANT SAYS BNP PARIBASÂ INVESTED AROUND $60 MLN WITH K1 BETWEEN APRIL 2007 AND JUNE 2008
FRANKFURT, Oct 29 (Reuters) - British bank Barclays may have lost most of the nearly $220 million it invested with the K1 Global Sub Trust hedge fund run by German Helmut Kiener, who was arrested on Thursday, German authorities said.
“If Barclays had known of the suspect’s plans, it would not have provided the K1 Global Sub Trust any funds for investment between 2006 and 2009,” the warrant seen by Reuters says, adding the funds “are mostly lost as far as we now know”.
The arrest warrant for Kiener outlining suspicions of fraud and breach of trust, dated Oct. 20, also said France’s BNP Paribas invested $60 million with K1 between 2007 and 2008.
Both Barclays and BNP Paribas are understood to have registered the loss in their half year accounts.
When contacted, both banks said they were cooperating fully with law enforcement agencies.
Related links:
K1 founder faces fraud enquiry - FT
The K1 asset allocation strategy - FT Alphaville
