ED&F Sues NY Broker After Hedge Fund Platinum Went Bust

Law360 (January 24, 2019, 6:19 PM EST) -- ED&F Man Capital Markets has accused a New York financial services firm of knowingly setting the global brokerage up with a troubled hedge fund client on the verge of going broke in order to collect an introduction fee.

Obex Securities LLC knew the investment firm Platinum Partners was insolvent when ED&F took it on as a customer in 2015, the ED&F unit alleged. Instead of issuing a warning, Obex allowed the deal to go through and collected an introductory fee, said ED&F. The brokerage firm argues that Obex isn't owed commission but is instead on the hook for £2.29 million ($3 million).

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