Jefferies Faces Class Action Over 352 Capital’s Water Bonds in Alleged $Millions Fraud
Updated
Updated · Bloomberg · May 28
Jefferies Faces Class Action Over 352 Capital’s Water Bonds in Alleged $Millions Fraud
2 articles · Updated · Bloomberg · May 28
New York state-court investors sued Jefferies Financial Group in a class action over 352 Capital’s purchases of bonds issued by Water Station Management.
The complaint says Leucadia Asset Management’s 352 Capital poured millions of dollars into the water-vending company’s bonds, which federal prosecutors have described as a scam.
Jefferies’ exposure is sharpened by its own allegations against the issuer: the firm has separately said Water Station Management was a fraud.
Jordan Chirico, a former 352 portfolio manager, was indicted last year and is also being sued by Jefferies, whose Leucadia unit oversees the fund.
Are Jefferies’ mounting legal woes a sign of isolated incidents or a systemic failure in risk management?
Amidst massive fraud lawsuits and federal probes, why is a major Japanese bank considering a takeover of Jefferies?