At one point high-flying Aletheia had $10B in assets under management and counted the state pensions of Louisiana and Oklahoma among its clients, but declared bankruptcy in November amid chronic legal and financial trouble. The new charges of “cherry-picking” allege that Eichler habitually executed speculative options trades before allocating them to any account. The losing trades, profitable 32% of the time, then went to two hedge funds under his management. The winning trades went to his own account and to favored clients. Win rate? 98%.

(New York Times at http://dealbook.nytimes.com)