Friday, 28 October 2016
Last updated 4 min ago
Dec 23 2010 | 10:03am ET
A New Jersey money manager has been accused of running a $40 million Ponzi scheme that included large hedge fund investments—without telling investors.
Carr Miller Capital poured some $16 million of the money it raised into hedge funds, as well as real-estate, film producers and oil and natural gas companies, and did so with informing investors, according to a lawsuit filed by the New Jersey Attorney General. But Paula Dow said that Carr didn’t just invest the money in ways it shouldn’t have been, but spent it in ways it shouldn’t have—on goodies for its principals.
Dow said Everett Miller, Brian Carr and Ryan Carr enjoyed cars, posh vacations and a luxury box at the New Jersey Devils’ Prudential Center, all paid for with client money.
“These defendants operated a Ponzi scheme for their own enrichment at the expense of investors,” Dow said. “Instead of investing funds to produce high rates of return as promised, we allege that the defendants spent investors’ hard-earned money on personal luxuries and indulgences.”
Marlton-based Miller Carr and its three principals deny the allegations. Still, the state has barred the firm and the three men from the securities industry, and a judge has frozen Miller’s assets and those of his companies.