At least four U.S. agencies are investigating
former officials of a now-bankrupt oil and gas company once
majority owned by troubled hedge fund manager Platinum Partners,
according to a legal filing submitted last week.
In a motion filed with federal bankruptcy court on Nov. 23,
a group of 10 directors, officers and employees of Black Elk
Energy Offshore Operations LLC said an undisclosed
number of them had incurred costs from investigations by the
U.S. Attorney's office in Brooklyn, New York, the U.S.
Securities and Exchange Commission, the Internal Revenue
Service, and the U.S. Postal Service.
The men, some of whom have close ties to Mark Nordlicht's
Platinum, filed the motion to request that Black Elk's insurance
policies cover costs related to those investigations and
potential settlements, in addition to lawsuits and claims by the
Black Elk litigation trustee and others.
The Black Elk investigations are happening in tandem with
U.S. federal probes into Platinum.
Spokespersons for the Department of Justice, SEC, USPS and
IRS declined to comment or did not respond to emails seeking
confirmation that the investigations are linked. A spokesman for
Platinum declined to comment.
In June, the hedge fund's New York headquarters were raided
by agents from the Federal Bureau of Investigation and the U.S.
Postal Inspection Service as part of a Department of Justice
Platinum later decided to liquidate its main hedge funds
under the supervision of a professional monitor amid pressure
from the DOJ's investigation, a similar probe from the SEC, and
the earlier arrest of a longtime associate on separate criminal
Since then, Platinum's main offshore hedge fund has received
U.S. bankruptcy protection as Cayman Islands-based liquidators
work to recover money and sell off its assets on behalf of
More recently, the trustee of a Black Elk litigation trust
sued Platinum funds and employees on allegations they improperly
transferred more than $200 million from Black Elk into its
various hedge funds, effectively killing the Houston-based
The core of those allegations were described in a Reuters
Special Report in April. (Read that report here: here)