The office of New York Attorney General Letitia James received an injunction in their favor against the private equity fund manager of ACP Partners X, LLC (or “ACP”), Laurence G. Allen. The NY State Supreme Court held hearings in late January and early February where Allen was questioned about ACP and other companies under his control.
Photo Credit: www.Shutterstock.com
Also, 10 other witnesses testified throughout the hearings, including six limited partners of ACP, “each of whom testified that they were deceived and/or defrauded by Mr. Allen,” per the court filing. “The Court finds that the Office of the Attorney General has established a likelihood of success on the claims asserted in the Complaint, and that the balance of the equities tips decidedly in favor of the Office of the Attorney General,” it continues. The hearings were presided by Judge Barry R. Ostrager.
“This order makes clear that no New Yorker should be investing a penny with ACP, these entities, or any business run by this individual,” said James in a statement. “We are gratified that after hearing the evidence the court concluded that the only reasonable outcome was to deny defendants access to the remaining investor assets.”
The court filing continues in what is nothing short but a scathing review of Allen’s actions, including “if the requested injunction is not ordered, Mr. Allen will remain in control of the assets of ACP, and the wind-down of the fund will likely proceed in a manner that furthers Allen’s self-interest to the detriment of the Limited Partners.” Also, “The Court does not credit any of this testimony and finds that ACP was essentially utilized as a piggy bank to fund a failing broker-dealer, its failing parent, and Mr. Allen.”
The statement from James’ office details the injunction in regards to allegations that Allen “misappropriated money from ACP, located in Rye Brook, New York. The court noted that while Mr. Allen offered a ‘fanciful explanation’ to justify his repeated transfers of investor funds, it was not credible, concluding, ‘The Court does not credit any of this testimony and finds that ACP was essentially utilized as a piggy bank to fund a failing broker-dealer, its failing parent, and Mr. Allen.’
The trial against private equity fund manager Allen is slated to begin in June 2020.
For more stories, visit www.hauteliving.com/hautelawyer
Reference: Court filing, NY AG statement
Legal News
February 7, 2020Huawei Sues Verizon For Patent Infringement Claim
