Allegations of Fraud Plague Hedge Fund of Democratic Super-Donor

Fox News Blog – The former hedge fund of one of the Democratic Party’s most important donors was allegedly involved in a scheme to defraud foreign investors out of tens of millions of dollars, according to documents filed in a Texas court.

Farallon Capital Partners L.P., a fund run by Farallon Capital Management, the multibillion-dollar hedge fund founded by Democratic donor Tom Steyer, became a limited partner in a project to build a large shopping mall near Seattle, Wash., in the mid-1990s after it guaranteed a line of credit for the project.

According to the Texas case, Farallon and other parties involved in the deal allegedly operated “in conjunction with” foreign-owned corporations in Texas “to defraud a group of over three-hundred German investors out of approximately sixty-million dollars.”

A “Ponzi scheme” in which the companies planning to build what was to be called the Washington Supermall “transfer[red] millions of dollars in funds through ‘loans’ and ‘advances’ to other unrelated entities,” the plaintiffs alleged.

Read full story here

About the HedgeCo News Team

The Hedge Fund News Team stays on top of breaking news in the Hedge Fund industry on an hourly basis. Signup to HedgeCo.Net to recieve Daily or Weekly news updates from our team.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply