Hedge Fund Still Wants Its Tax-Avoidance Profits - Bloomberg View

Hedge Fund Still Wants Its Tax-Avoidance Profits - Bloomberg View:

"Here's a passage from a lawsuit:

Mr Patel and Mr Barenys confirmed that MLI would be able to generate a profit for Lycalopex from the DAS, but asked whether a 75% return rather than the 100% return originally proposed (i.e. a profit over the first year of $15 million rather than $20 million) would be acceptable. Mr Patel said words to the effect that: "I can't do $20 million, but I'll definitely get you to $15 million". Mr Devonald and Mr Williams said they would consider this request and revert to Mr Patel and Mr Barenys. The same day, they sought and obtained approval for this reduced profit commitment. They relayed that approval to MLI the following day.
Here's a link to the lawsuit, but don't click it yet. First, I want you to guess: What kind of lawsuit is it? Raj Patel and Angel Barenys of MLI came to Andrew Devonald and Grant Williams of Lycalopex with good news and bad news. The bad news was that MLI couldn't guarantee Lycalopex a one-year profit of $20 million, or 100 percent of its original investment (of $20 million). The good news was that MLI could guarantee Lycalopex a $15 million profit, or 75 percent. So: Who are these people, and what were they up to?"



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