Whistle-Blowers Sparked Probe at Trade-Finance Fund Barak (1)

Auditors are probing whistle-blower complaints about Barak Fund Management as the firm seeks approval to restructure a $1 billion trade finance fund that’s left investors stuck with hard-to-sell assets.

Some employees lodged complaints with the Mauritius-based investment firm last year, according to people familiar with the matters. Two raised concerns about the quality of collateral linked to some loans that it made, while another warned about the overvaluation of some assets, said the people, who asked not to be named because the details are private.

The firm acknowledged that three complaints were received, with two relating to “allegations of impropriety,” ...