BoardIQ Quotes Investment Management Partner on Duties of Fund Directors In Connection with Intentional Fraud

In The News
February 11, 2015

An article titled “Independent Directors Seek Answers After Chair’s Arrest” was published on Jan. 27 in BoardIQ, and discusses the arrest of a GL Beyond Income Fund chairman for securities fraud relating to the fabrication of loans and the misuse of up to $16 million in assets. The article quotes investment management partner Thomas Hiller (Boston), who comments on the duties of fund directors in situations involving intentional fraud. Mr. Hiller notes, “In most cases, intentional fraud is very difficult to detect, and it’s unfair to expect fund directors to uncover intentional fraud…I’m sure the SEC will be scrutinizing the record to determine if anyone, including the directors, didn’t discharge their duties.”