The return of Dominique Strauss-Kahn to finance has come under renewed scrutiny after it emerged his late business partner Thierry Leyne had been embroiled in a dispute with a Swiss investor before his death in an apparent suicide last week.
Leyne, chief executive and co-owner of Leyne, Strauss-Kahn Partners, fell to his death from a Tel Aviv building on 23 October.
Just three days before his tragic death, Mr Strauss-Kahn announced he would be stepping down as chairman of LSK & Partners "to dedicate himself to other activities".
The former head of the International Monetary fund had acquired a 20 per cent in the firm last year in an effort to rebuild his career.
Mr Strauss-Kahn resigned as managing director of the International Monetary Fund in an embarrassing episode after he was accused of raping a hotel maid in 2011.
Now it has emerged his late business partner was in dispute with a Swiss hedge fund which accused him of making unauthorised trades with its money.
Insch Capital Management made a formal complaint to Swiss regulators claiming that LSK & Partners made "totally unauthorised purchases" of shares in Firstcaution, an insurer of which LSK & Partners owned a majority stake.
Insch claims LSK used $400,000 from the firm's funds deposited in VP Bank- a private bank headquartered in the Principality of Liechtenstein- to buy shares in Firstcaution.
Insch's chief executive, Christopher Cruden, told The Independent neither his firm nor clients lost money after Mr Leyne agreed to refund the money.
In a separate development, LSK's fund management arm, Assya, was granted a suspension of debt payments in a Luxembourg court on Thursday as it seeks to win protection against creditors, including Swiss insurance group Baloise, which recently sued the firm for two million euros.
Shares in LSK & Partners were suspended last week and have lost more than half of its market value.
Mr Strauss-Kahn's stake was worth 20 million euros when he joined the firm last year. LSK & Partners has taken its website down and could not be reached for comment.Reuse content