Sunday, 19 April 2015
Last updated 21 hours ago
May 7 2010 | 3:27am ET
Greenlight Capital has won another victory over private equity firm Allied Capital Corp., as a former Allied portfolio company has settled charges that it defied federal regulations.
The New York hedge fund had sued Business Loan Center, now called Ciena Capital, and its parent, Business Loan Express, accusing the business lender of certifying that it complied with Small Business Administration Rules when it, in fact, did not. Greenlight and its co-plaintiff, James Brickman, brought a so-called whistleblower suit against Ciena, which allows private citizens and companies to sue on behalf of the U.S. government.
Greenlight and Brickman will split $4.3 million of the $26.3 million settlement, which also resolves Greenlight’s demand that Allied Capital be held accountable for Ciena’s wrongdoing.
Ciena’s failure to heed the SBA rules emerged after several federally-backed loans the firm made and serviced defaulted. One of its former executives has been sentenced to 10 years in prison for his role in the fraud.
The settlement still requires the approval of a federal bankruptcy judge, who will hold a hearing next month.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…