Hindenburg founder set to face fraud probe over hedge fund

Nate Anderson, the 'activist' short-seller who announced shutting down of his almost eight-year-old research firm Hindenburg, is under the cloud for his alleged links with hedge funds in preparing reports targeting companies, a Canadian portal said citing documents filed before a court in Ontario.

- PTI and [e-mail]

In a cache of documents filed at Ontario Superior Court of Justice in a complex defamation lawsuit, the head of Canada's Anson hedge fund, Moez Kassam said his firm has shared research "with a wide variety of sources" including Hindenburg's Anderson.

The Market Frauds portal said court documents allegedly revealed that Hindenburg colluded with Anson while preparing a report. The preparation of bearish reports without disclosure of participation can be charged as securities fraud by the US Securities and Exchange Commission (SEC).