Saturday, 29 August 2015
Last updated 15 hours ago
Oct 3 2013 | 3:17am ET
The court-appointed trustee for a bankrupt Fletcher Asset Management hedge fund says that the firm's founder raided the fund to pay for his explosive racial-discrimination lawsuit against one of New York's most prominent apartment buildings.
Richard Davis said that Alphonse Fletcher used nearly $1 million from the Fletcher International Fund to pay legal bills stemming from his claim against the storied Dakota Apartments. Fletcher sued the Central Park West building, best known as the former home of the Beatles' John Lennon and the site of his murder, alleging that its board rejected his bid to purchase an apartment next to his because he is black.
The lawsuit is still pending.
In an avoidance action filed in federal bankruptcy court in Manhattan, Davis is seeking the return of $975,000 paid to Fletcher's law firm in the case, Kasowitz Benson Torres & Friedman.
Fletcher put his International Fund into bankruptcy last year to prevent a Cayman Islands-appointed liquidator from selling its assets—although a Caymans court has found that those assets are worthless. In October, a federal bankruptcy judge appointed Davis trustee of the fund at the urging of three Louisiana public pension funds that invested $100 million with Fletcher.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…