Settlement reached in Grand Island Funds collapse

(CNS Business): In the latest report to the Grand Court on the collapsed Grand Island Funds, the joint official liquidators (JOLs) said that final distributions to shareholders should be around 60 cents on the dollar. The funds collapsed in 2008 when it became apparent that US $19 million had been misappropriated, for which the fund manager, the only person who has been charged in connection to the fraud, was later convicted and sent to jail for eight years.  The JOLs had commenced legal action against the Funds' broker, ScotiaMcLeod; its administrator, Close Brothers (Cayman) Limited; the auditor, KPMG; and director John Sutlic to seek the recovery of money lost as a result of what the JOLs alleged were failures to undertake their duties. Read more on CNS Business