Saturday, 1 October 2016
Last updated 20 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.