Bonus Lawsuit Against Touradji Is Back

Jul 5 2011 | 12:48pm ET

Touradji Capital Management will have to defend itself against allegations that it withheld more than $50 million in bonuses from two former employees, a New York appeals court has ruled.

The court found that a lower court judge should not have dismissed three claims against the commodities hedge fund in 2009. Gentry Beach sued the firm in December 2008, accusing it of withholding $23 million, or three years' worth of bonuses. A month later, Robert Vollero joined the action, alleging that Touradji tried to bully him into writing to investors to defend the firm against Beach's lawsuit, holding his own bonus hostage until he did so.

Touradji later in 2009 countersued the two men, alleging that they were "responsible for the destruction of millions of dollars of investor capital through a pattern of fraud, breaches of fiduciary duty, mismanagement and utter disregard for the interests of the investors." The hedge fund also sued Beach's father, Gary, who had previously sued the firm for undermining a joint venture between them.

The appeals court reinstated claims of unjust enrichment and violation of labor laws.

A lawyer for Touradji, Sean O'Brien, dismissed the court defeat as a "technical ruling" in an interview with Bloomberg News.

"These are claims which we are confident will ultimately be dismissed."

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...