Hedge funds allege $1.5 bn fraud by Indian real estate firm IREO Management

The two hedge funds said they first noticed red flags with IREO management four years ago

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.

“Someone cannot simply just take billions of dollars of our money and get away with it,” Axon’s Dinakar Singh, a former Goldman Sachs Group Inc. trader, told about 70 investors Monday at the Westin New York Grand Central hotel. “If we do