Friday, February 02, 2007
Hedge Fund Files Qui Tam Suit Against Business Loans Express
A hedge fund, Greenlight Capital, has filed a whistleblower lawsuit claiming that Business Loan Express (BLX) defrauded the Small Business Administration, according to the Wall Street Journal.
But one wrinkle is that Greenlight has taken a short position on the stock of BLX’s parent company, Allied Capital Corp., essentially betting that the value of the stock will fall, it was reported on the False Claims Act/Qui Tam Web site.
Allied Capital has been under investigation for more than two years by the U.S. attorney for the District of Columbia in connection with a criminal probe of BLX, but the government has declined to intervene in Greenlight’s case.
Click here for more information about the BLX suit.
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Posted by Quitam Help Admin on 02/02 at 09:52 AM