Conn. Looks Into Wesleyan Dispute With Ex-Money Man

Jan 13 2010 | 11:56am ET

Connecticut’s attorney general has launched an investigation into Wesleyan University’s former endowment chief, accused by the school of building a hedge fund career on its dime.

Richard Blumenthal said he’ll look into the school’s lawsuit against Kannam to see if he misappropriated any of Wesleyan’s money.

“If any misused monies consist of contributions to endowment funds or other charitable purposes, we would have authority and certainly responsibility to investigate,” Blumenthal told Bloomberg News.

A lawyer for Kannam said that Blumenthal, a Democrat who is running for the U.S. Senate seat being vacated by Sen. Christopher Dodd, won’t find anything.

“There’s not a single allegation in their complaint that Wesleyan’s endowment money was either misappropriated or inappropriately invested,” Stephen Fitzgerald told Bloomberg. “That’s because it didn’t happen.”

Wesleyan has sued Kannam for breach of contract, alleging that he “defrauded the university of thousands of dollars” while working to set up a hedge fund called Cross Border Capital Advisors. Kannam later, in 2006, joined Belstar Group as director of investment. He was fired by the Middletown, Conn., school in October.

“Kannam leveraged his employment at the University for personal gain in his entrepreneurial ventures and bragged to Ralph Gill”—his partner at Cross Border—“‘The power of wearing two hats is key—our secret weapon,’” the lawsuit alleges.

Kannam's Cross Border Capital Advisors is not related to London-based hedge fund CrossBorder Capital.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.