Hedge fund thriller unfolds in Russia

Think Russian-style capitalism has been tamed recently? Think again. Hermitage Capital Management sent a letter, obtained by the New York Post, to clients that details an elaborately brazen attempt to steal the company's assets. The note "describes police raids, fake companies and at least one murderer all connected to a twisted and complex fraud scheme hatched by thieves," who ultimately failed in stealing the fund's $3 billion in assets. But they ended up with enough stolen documents to concoct a bogus lawsuit judgment, which wiped out a lot of earnings (they claimed a $230 million fraudulent tax refund from the Russian government). You cannot make this stuff up. Operating a hedge fund in Russia still seems like an act of faith.

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