RCMP launch criminal probe of Portus

Date: Thursday, July 21, 2005
Author: Investment Executive.com

The RCMP’s commercial crime unit has opened a criminal probe into hedge fund company Portus Alternative Asset Management Inc., which collapsed earlier this year.

RCMP opened the investigation after examining information from Portus’ court-appointed receiver KPMG.

KPMG has alleged Portus appears to have wired $246 million to a Caribbean tax haven.

Portus Alternative Asset Management raised $730 million from 26,000 Canadian investors before regulators began questioning its sales and compliance practices earlier this year.

In February, the Ontario Securities Commission issued a temporary order preventing Portus from paying out money to investors in the firm’s family of hedge funds.

The OSC also imposed a trading ban on Portus and on its president, Boaz Manor.