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Good news: Investigators have finally tracked down missing funds of a hedge fund.

Bad news: Except for $150,000, $150 million is still missing.

More bad news: So is the CEO.

Kirk S. Wright, founder and CEO of Atlanta-based International Management Associates LLC, said the firm was beset with redemptions but had about $150 million of client assets in the bank, during a Feb. 15 interview with The Wall Street Journal. Two days later, a Georgia state justice froze the assets of the firm and its three principals, including Mr. Wright, after several current and former professional football players (who? tell me!). who invested more than $15 million with the firm accused the company of fraud, forgery and refusing to meet redemption requests.

Other International Management clients quickly made similar allegations, kicking a regulatory inquiry into high gear. Over the past week, the Securities and Exchange Commission and a receiver (possible pun, not sure) appointed to mind International Management's assets have scoured the hedge-fund firm's offices, records and accounts, but found only crumbs (crumbs??). To date, investigators have only tracked down a tenth of one percent of the money Mr. Wright claimed was in the bank on Feb. 15.

A warrant was issued for his arrest in Georgia state court late Friday. Mr. Wright, who claims an investor has threatened his life, hasn't been seen for more than a week, according to people close to the situation. He postponed a visit to the SEC's Atlanta office to answer questions last week, saying he needed time to hire local counsel.

Let's assume it was a player who made the threat, which one could it be? I mean, there are so many possible suspects.

According to the Rocky Mountain News:

The former Denver Broncos players liked the investment pitch, pouring millions of dollars into the Atlanta-based hedge funds.

Now they say they were burned.

Steve Atwater, Terrell Davis and Ray Crockett, along with other investors including current Broncos wide receiver Rod Smith, have filed a lawsuit in Georgia against International Management Associates, saying the firm and its fund managers committed fraud and forgery and failed to return their money.

Clyde Simmons, who played with the Philadelphia Eagles and the Chicago Bears, among other teams, and Blaine Bishop, a former Eagle and Tennessee Titan, entrusted money to the firm, too, the lawsuit said.

Here’s what they had:

Atwater, a former safety, and his family had $4.5 million in the funds, the lawsuit said. Davis, a star running back in the late 1990s, had investments valued at $2.2 million, while Crockett, an ex-cornerback, had a total of $3.7 million. Smith, meanwhile, had $1.5 million.

If anyone needs me, I'll be scanning eBay for Super Bowl rings.

Posted by edelfenbein at February 26, 2006 11:33 PM