Feds Reportedly `Wade In' As New Stream Capital Denies Problems

The federal investigation is likely looking into two main issues: (1) did New Stream bring in US money without properly disclosing risk that they’d be subordinate to foreign investors, and (2) did they hold off writing down asset values in order to induce new investments, avoid redemptions and also earn higher management fees.

Keen Implode-o-Meter readers might recall that New Stream is the fund responsible for foreclosing on Veronica Hearst's Palm Beach mansion. But that is only some of the most high-profile scuttlebutt the "loan shark to the rich" fund seems to have been involved with.

Now it seems that shark has run into what it didn't expect -- an even bigger predator swimming the financial seas.