From Safe Distance, Manor Blames Lawyer For Portus Ills

May 17 2007 | 4:00pm ET

Left with little more than a “fantastic story” in his defense, alleged hedge fund fraudster Boaz Manor dusted off a time-tested refuge of the accused: Blame your lawyer.

Manor, co-founder of the collapsed Canadian hedge fund Portus Alternative Asset Management, has not been the most cooperative of suspects. After the C$800 million (US$728 million) hedge fund collapsed, but before the Ontario Securities Commission seized its assets, he fled to Israel, where he need not fear extradition. He tried to move some US$35 million from Caribbean bank accounts and bought almost US$9 million worth of diamonds, in Hong Kong. When he did finally get around to meeting with KPMG, the court-appointed receiver for Portus, he pointed the finger at lawyer Anthony Malcolm.

According to Manor, Malcolm set up companies in the Caribbean and directed Manor to register Portus’ fund in his own name. According to KPMG, Manor’s story was “not credible.”

“His explanations for many events were confusing, convoluted, imprecise and unsupported,” KPMG writes in a report. Manor, it seems, would not disagree.

“I know that a lot of the things I’m saying are fantastic in nature,” the report quotes Manor as saying. “Going to Italy, going to Zurich, there’s diamonds, there’s hundreds of millions of dollars, if you lump it all together, it’s sort of a fantastic story.”

For his part, Malcolm—who KPMG deemed credible—denied all of Manor’s claims against him.

KPMG presented its report to a judge in Canada today, seeking approval to ask courts all around the world—in the Caribbean, Israel, Italy and Switzerland—for help in recovering what might be left of the US$18 million that remains missing. Manor and his co-founder, Michael Mendelson, have been charged with failing to act in good faith and face fines of up to C$5 million and five years in jail.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

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

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

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.