First Department Sustains Claims Against Fund Administrator After Hackers Grab Millions

October 4, 2017

A legal feud is currently playing out in New York state court between the world’s biggest hedge fund administrator and a former client, and it all started with an email from an address containing a single extra letter. At the center of the lawsuit is the question of responsibility for an email scam that resulted in hackers stealing millions in client funds, and it is a case study in the mounting problem of cyber wire fraud and allocating fault when funds go missing.

In March 2016, Tillage Commodities Fund, L.P., then a $10 million commodities investment fund, hired SS&C Technologies as its third-party fund administrator. As is typically the case, SS&C was responsible for executing wire transfers related to the fund’s ongoing business operations such as investor redemptions, distributions, and expense payments.

To continue reading Craig Newman and Maren Messing's article from the New York Law Journal, please click here