The hedge fund industry may have played a small part in the financial crisis, but it generated plenty of scandals this year.
Here are some of the most prominent disasters and allegations of wrongdoing to hit the industry:
* Frontpoint Partners was forced to shutter its $1.5 billion health-care fund after a manager at the firm, Chip Skowron, allegedly received tips from a French doctor on confidential information about a drug trial.
* SAC Capital Management took it on the chin after founder Steve Cohen was hit with a series of lawsuits by his ex-wife accusing the billionaire of insider trading.
* Some investors in Harbinger Capital pulled money after learning that founder Phil Falcone took out a $113 million personal loan from one of his funds, leading to a Securities and Exchange Commission probe.
* Diamondback and Level Global were raided by the FBI as part of an insider trading probe led by US Attorney Preet Bharara.
* Titan Capital was smacked with a lawsuit by an investor who claimed one of its founders misled it about Titan’s investment strategy, resulting in a loss of 74 percent in a matter of months.
* Chimay Capital’s founder Guy Albert de Chimay was arrested and charged with scamming clients out of $6 million.