Lake Shore Fund Director Baker Indicted in $300 Million Fraud

Date: Tuesday, June 16, 2009
Author: Andrew M. Harris, Bloomberg

Philip J. Baker, managing director of the collapsed Chicago hedge fund Lake Shore Asset Management Ltd., was indicted by a U.S. grand jury for allegedly operating a $300 million fraud scheme.

The 27-count indictment was unsealed yesterday, Chicago U.S. Attorney Patrick J. Fitzgerald said in a statement today. While an arrest warrant has been issued for Baker, 44, his whereabouts are unknown, the prosecutor said.

The U.S. Commodity Futures Trading Commission last year accused Baker in a civil enforcement suit of having defrauded at least 700 investors by hiding trading losses. The criminal case was assigned to U.S. District Judge John Darrah, according to court records.

The case is U.S. v. Baker, 09cr175, U.S. District Court, Northern District of Illinois (Chicago).

To contact the reporter on this story: Andrew M. Harris at the federal court in Chicago: aharris16@bloomberg.net.