First Department Sustains Claims Against Fund Administrator After Hackers Grab MillionsOctober 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.
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