Shareholders in Bayou Group's funds have been feeling a little uneasy ever since the refund checks that Bayou sent to investors bounced and the firm failed to answer their phone calls, The New York Times. The funds under question with state and federal officials are the Bayou Fund LLC and Bayou Fund Ltd., from which $440 million is reportedly missing.

This is not, however, the first time that Bayou is under scrutiny by officials. The Connecticut Department of Banking reportedly investigated Bayou in 2003 for misrepresenting fund performance. That investigation was settled quietly with a cash payoff of $7,500.

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