Platinum Partners Case Is Latest Prosecutorial Overreach

When the U.S. attorney for the Eastern District of New York, Robert Capers, unsealed an indictment late last year against operators of a hedge fund that managed more than $1 billion dollars, he portrayed it as a straightforward fraud. "Like a Ponzi scheme," were the words Mr. Capers used in a press release that portrayed the founder and chief executive office of Platinum, Mark Nordlicht, as having been on the verge of fleeing to Israel.

When the U.S. attorney for the Eastern District of New York, Robert Capers, unsealed an indictment late last year against operators of a hedge fund that managed more than $1 billion dollars, he portrayed it as a straightforward fraud. "Like a Ponzi scheme," were the words Mr. Capers used in a press release that portrayed the founder and chief executive office of Platinum, Mark Nordlicht, as having been on the verge of fleeing to Israel.…