A bankruptcy maneuver appears to have taken advantage of farmers. No, we’re not talking about the MF Global cover-up. Texas farmers suing Scopia Capital Management According to a FinAlternatives report, a group of Texas farmers is suing a New York hedge fund saying it defrauded them in a bankruptcy play. The dispute is between farmers of “guar,” a highly profitable bean used in shale gas production and fracking processes, and Scopia Capital Management. In the middle of the deal is an organization, West Texas Guar, that apparently procured the guar from 285 farmers but failed to pay, instead filing for…
Farmers Say New York Financial Firm Knew Their Customer Would Declare Bankruptcy
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.