Nearly $250 million which investors put into the Portus hedge fund was sent to a Caribbean tax haven, a newspaper says, citing court documents.

"We don't understand why there would be money flowing offshore," Bob Rusko, from accounting firm KPMG, told the Globe and Mail in a story published Saturday.

KPMG is the court-appointed receiver for Portus Alternative Asset Management, a fund which raised $730 million from 26,000 Canadian investors before regulators began questioning it earlier this year.

In documents filed with in court, KPMG says Portus appears to have wired $246 million to a Caribbean tax haven, the Globe reported.

No details about which haven were published.

KPMG's Rusko said the situation is very confused.

On its Portus website, the firm says it's not known whether investors will get their money back. "We don't have sufficient information to answer that question," it says.

As receiver, it's trying to track down and find out where all the money is.

• FROM MARCH 3, 2005: Manulife guarantees clients won't lose money from Portus investments

Manulife has guaranteed some of the money invested it Portus because it referred some its clients to the hedge fund.