The collapse of Bayou Management has put a number of high-net-worth financial consultants, including the prominent hedge fund adviser Hennessee Group, in an uncomfortable position, according to a report late last week from The Wall Street Journal.

Bayou, a Stamford, Conn.-based hedge fund abruptly announced in July that it would shut down its operations and ceased contact with its investors. Its CEO, Samuel Israel III, has been charged with fraud and millions of dollars in investors' funds are missing. As state and federal authorities try to piece together exactly what happened, the consultants that vet hedge funds for wealthy investors in exchange for a fee from the money manager are coming under scrutiny.

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