George Weiss Liable for $100 Million Jefferies Debt, Judge Rules

Hedge fund founder George Weiss is personally liable for about $100 million in debt his eponymous firm owes Jefferies Financial Group Inc., a federal judge ruled Wednesday.

Judge Alvin Hellerstein in Manhattan said a forbearance agreement the founder signed months before Weiss Multi-Strategy Advisers filed Chapter 11 included a personal payment guarantee on behalf of Weiss and his companies.

The ruling is a setback to Weiss, who has been sparring with Jefferies and its Leucadia Asset Management affiliate over the past year. Jefferies, a major creditor of Weiss Multi-Strategy Advisers, has asserted the hedge fund and Weiss owe $52.4 ...