Does Plainfield Know Their Whistleblowers?

Plainfield’s general counsel, Thomas Fritsch, told a trade publication this week he thinks the Dodd-Frank Act is unfair because the fund can’t confront their anonymous accusers. You know-the ones that sent internal documents and taped conversations to the SEC in a whistleblower compliant last summer. (And everyone’s been writing about.) Well that’s odd because I reported last month for DealFlow Media, an ex-Plainfield managing director, August Ceradini, had been interviewed by the FBI and some of his taped conversation were part of the whistleblower complaint. Conversations that included which deals he thinks Plainfield is inflating.

Given Fritsch has read my reporting, it seems odd he would tell HFMweek that ‘the whistleblowers where hiding behind several layers of anonymity’ when he knows who at least one of them are. Additionally, why does it matter who’s whistle-blowing about Plainfield overvaluing assets and allegedly charging pension funds millions in additional fees- shouldn’t Plainfield be able to explain why the assets are not inflated regardless of who the SEC is talking to?

HFMweek also gave the fund a bone and threw in a line that Max ‘might start a new fund’. Even FINalternatives, a publication I’ve written for, jumped on the bandwagon and followed this line about how ‘maybe-just maybe’ Holmes could start over and win investors trust again. Except both publications failed to report if he’s raised any outside money, registered a new fund name, or has any seasoned portfolio managers willing to join his possible new fund.

It’s up to the reader to demand better reporting from your financial journalist and financial journalist to ask tough questions before they hit the print button. Comment here and let them know what you think.


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