German hedge fund manager detained on suspicion of fraud

German hedge fund manager detained on suspicion of fraudWuerzburg, Germany - A German hedge fund manager has been detained on suspicion of depriving major international banks of 200 million euros (294 million dollars), sources told the German Press Agency on Thursday.

The 50-year-old man was picked up during a search of his home in the southern German city of Aschaffenburg on Wednesday, prosecutors said.

They said the man, who was not named, was being questioned on suspicion of fraud and breach of trust, following complaints by clients.

Among the banks said to have suffered losses were Barclays, J, P. Morgan Chase and BNP Paribas, media reports said.

Lawyers for the man said they would lodge a complaint against his detention.

The man, who is believed to be a billionaire, reportedly misstated assets of his K1 hedge fund in order to obtain credit.

In 2001, Germany's financial watchdog ordered the K1 fund to stop doing business after accusing the man of administering investments without authorization. (dpa)