Friday, September 05, 2008

Zwirn Denies Tabloid Report On FCC Probe

It seems we have a failure to communicate about a failure to communicate.

D.B. Zwirn & Co. has denied the key allegations leveled against it by the former CEO of a company it lent $20 million to. The New York Post earlier this week reported that Tama Communications, which ran a group of radio stations in Florida and Georgia, had accused the New York hedge fund of improperly transferring nine radio licenses to itself, and that the Federal Communications Commission had opened an investigation into D.B. Zwirn.

The FCC is looking into the allegations, but that is just about the only claim the hedge fund does not take issue with.

“The complaint and FCC inquiry have been instigated by a party that lacks standing against a party that has never made the disputed claim,” attorneys for D.B. Zwirn wrote. That party is former Tama CEO Glenn Cherry, according to the firm.

Brian Maddox, a spokesman for D.B. Zwirn, added that the hedge fund had received an inquiry from the FCC, and that a response is forthcoming. If the FCC finds that the hedge fund did, in fact, transfer the licenses without its approval, Tama could lose the licenses.

The Post story, which Zwirn’s lawyers call “factually incorrect,” reported that, in addition to illegally transferring the licenses, D.B. Zwirn had forced Tama in bankruptcy protection.

“D.B. Zwirn, contrary to what the article states, did not force Tama into bankruptcy,” the firm’s lawyers said.

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Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.