Platinum Partners' Nordlicht, others face $1 billion fraud trial in NY

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Platinum Partners' Nordlicht, others face $1 billion fraud trial in NY
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Former Platinum Partners chief Mark Nordlicht and other executives of the now-de...

NEW YORK - Former Platinum Partners chief Mark Nordlicht and other executives of the now-defunct hedge fund group are due to go to trial on Tuesday on charges they defrauded investors out of $1 billion.

On trial alongside Nordlicht are David Levy, who was Platinum’s co-chief investment officer; Joseph SanFilippo, who was chief financial officer of Platinum’s flagship Value Arbitrage fund; and Daniel Small, who was a Platinum managing director. All have pleaded not guilty. Authorities said Platinum operated “like a Ponzi scheme” by using new money to fund redemptions by earlier investors, which were referred to internally as “Hail Mary time.”

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