With Mark Douglas
In a decision with potential far-reaching effects on Wall Street firms servicing hedge funds as prime brokers, on February 15, 2007, a New York bankruptcy court ordered Bear Stearns to disgorge nearly $160 million that it received in the form of margin payments, position closeouts and fees from a hedge fund that had engaged in a ponzi scheme because, among other things, the broker failed to adequately monitor the activities of the fund before it collapsed in 2000.