Saturday, 28 March 2015
Last updated 1 day ago
Aug 4 2010 | 2:55am ET
Diamond Lake Investment Group never generated a nickel for an investor. But it has generated at least one lawsuit.
The hedge fund, founded by former Merrill Lynch trading chief Dow Kim, never got off the ground. By the end of 2007, Kim had lost the substantial commitments made to Diamond Lake by Merrill, Credit Suisse and a pair of Asian investors. Michael Pasternak, a portfolio manager during Diamond Lake’s short life, doesn’t think that absolves Kim of the commitments he made to his employees.
According to Pasternak’s lawsuit, Kim lured him to Diamond Lake—and away from a job offered by Morgan Stanley—with promises of a minimum salary of $2 million per year for the first three years. Kim told Pasternak that he had lined up between $1 billion and $2 billion from three investors, two in Asia and one in Europe, the suit alleges, although Pasternak claims Kim would not tell him who the investors were.
The only problem was, according to Pasternak’s lawsuit, that Kim “did not have the agreements with strategic investors.” Pasternak also accuses Kim of misrepresenting the situation to him.
Pasternak is seeking $12 million—$6 million for each of his two claims—not for the three year-guarantee he received from Kim, but for the compensation he was guaranteed by Morgan Stanley Investment Management, as well as punitive damages.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
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…