Marhedge reports that Charles Schmitt, founder of the CSA Absolute Return Fund (CSA ARF), has filed for bankruptcy after appearing without a lawyer at a Hong Kong High Court bankruptcy petition hearing.
Schmitt, a Hong Kong resident is charged with theft of US$930,000 from the CSA ARF, following fraud allegations that first surfaced last year. The funds administrator appointed by the Securities and Futures Commission in Hong Kong has opposed the bankruptcy petition on the grounds that it will add costs and delays to the liquidation process, which will likely return less than 80 cents on the dollar to approximately 1,700 investors.
