Hedge funds accuse Indian real estate developer

Two high-profile hedge funds accused one of India’s biggest real estate developers of defrauding its foreign investors out of as much as $1.5 billion, potentially one of the largest private equity scams ever. IREO Management engaged in a billion-dollar criminal conspiracy involving shadow companies, dumped documents and “astonishing theft,” according to Axon Capital and Christopher Hohn’s Children’s Investment Fund Foundation. Axon and the Children’s Investment Fund Foundation — one of the largest philanthropies in the U.K. — invested about $300 million in IREO. There are several hundred other investors including Notre Dame University and the University of Rochester.