Wednesday, 28 January 2015
Last updated 15 min ago
Oct 30 2007 | 2:30pm ET
The founder of collapsed Canadian hedge fund Portus Alternative Asset Management will return to Toronto next month to face fraud charges, court-appointed receiver KPMG said today.
A court in Israel, where Boaz Manor fled just before the Ontario Securities Commission seized his firm’s assets, lifted a travel ban that KPMG asked the court to impose two years ago. Manor is expected to fly to Toronto on Nov. 13, where he has been charged by the Royal Canadian Mounted Police with fraud and obstruction of justice. Portus co-founder Michael Mendelson has also been charged.
KPMG, which had been unable to reach an agreement with Manor on the fate of a Portus-related case making its way through Israeli courts, had sought to extend the travel ban. But those issues have apparently been resolved to KPMG’s satisfaction.
Manor will only be allowed to travel under a strict set of guidelines. He will have to be accompanied to the airport by both his lawyer and an attorney from KPMG. Further, he will be babysat on the long flight to Toronto by the KPMG lawyer, before surrendering to the Mounties in Canada.
Further, KPMG won the right to continue its civil case against Manor in Israel, seeking to recover diamonds that Manor reportedly took with him when he fled Canada. Manor’s lawyers had sought to stay that case and move the civil proceedings to the Canadian courts.
“We are extremely pleased with the reported decision as it ensures that Mr. Manor will face justice in Canada while ensuring that the rights of the investors to recover assets from him are preserved,” KPMG’s Robert Rusko said.
Separately, KPMG announced an interim payment to Manor’s alleged victims. Proven claimants against Portus—numbering some 16,000 clients—will receive 15 cents on the dollar.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…